Impact of the Pandemic Hits the Northeastern Restaurant Chain
The restaurant chain Friendly’s, known for its range of specialty ice cream sundaes and burgers and predominantly situated in the northeastern United States, has formally filed for chapter 11 bankruptcy protection. This decision was announced recently by Friendly’s’ parent company, FIC Restaurants Inc., stating that most of the chain’s assets will be sold to the Amici Partners Group, a Connecticut-based firm comprised of seasoned restaurant investors.
In its prime during the 1980s, Friendly’s operated roughly 700 locations in the northeastern US. However, over time, this number has decreased significantly. This isn’t the first time Friendly’s is facing bankruptcy, as they previously filed for protection back in 2012. Presently, only about 130 Friendly’s outlets are operational. Despite attempts to modernize its offerings for contemporary diners, the chain faced additional challenges due to the COVID-19 pandemic.
George Michel, CEO of Friendly’s, remarked in a statement, “Unfortunately, like many restaurant businesses, our progress was abruptly halted by the severe impact of COVID-19, resulting in decreased revenue due to the suspension of dine-in services for months and subsequent reopening with limited capacity.”
Friendly’s, the 85-year-old East Coast diner chain renowned for its “Fribble” milkshakes and sandwiches, files for bankruptcy for the second time in less than a decade https://t.co/q2xdMOY3BF
— CNN Breaking News (@cnnbrk) November 2, 2020
Friendly’s is seeking a mid-December court hearing date and is working on a sale plan in the interim. As per FIC Restaurants’ statement, transferring the chain’s assets to Amici will allow most of the remaining 130 locations to stay open, safeguarding the jobs of their employees.
Michel expressed optimism saying, “We believe the voluntary bankruptcy filing and planned sale to a new, deeply experienced restaurant group will enable Friendly’s to recover from the pandemic as a stronger business, with the necessary leadership and resources to invest in the business, serve its loyal customers, and compete to attract new clientele in the long run.”
