Friendly’s is filing chapter 11 bankruptcy. The restaurant, like many others, has been struggling during the pandemic.
“Unfortunately, like many restaurant businesses, our progress was suddenly interrupted by the catastrophic impact of COVID-19, which caused a decline in revenue as dine-in operations ceased for months and re-opened with limited capacity,” said CEO George Michel in a statement.
Friendly’s parent company, FIC Restaurants, Inc, was bought for $2 million by Amici Partners Group, LLC.
The chief restructuring officer of Friendly’s, Marc Pfefferle said that while the purchase price is not substantial, the sale allows the business to continue, saving jobs and protecting franchises.
According to court documents, the restaurant had a $88 million debt. The debt was waived by lenders, as part of the deal made with Amici Partners Group.
For some diners, Friendly’s is a nostalgic reminder of childhood.
“It’s a lot of our childhoods, birthday party’s, mom takes you out of school early – surprise Friendly’s trip, it was the straw that changed color when you drank a neon-colored soda,” said Conor Dowd, Founder of Boogie Branding.
Dowd thinks that it is a shame that the company is filing for bankruptcy.
“I think it could have been avoided if they rebranded,” Dowd declared.” They don’t do enough to market to 15-30-year-olds, people my age who grew up on Friendly’s,” he said.
In 2011, Friendly’s filed for bankruptcy and closed 63 stores.
In a filing, the company said that they had been trying to return the business back to profitability.
“We achieved this by delivering menu innovation, re-energizing marketing, focusing on take-out, catering and third-party delivery, establishing a better overall experience for customers, and working closely with our franchisees and restaurant teams,” said Michel.
The company expects all of its 130 locations to remain open.
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