Friendly’s Files For Bankruptcy Again, Says Pandemic Hurt Recovery Efforts
Friendly’s declared bankruptcy for the second time over the weekend, saying the pandemic hindered its recovery efforts, according to Restaurant Business.
The company is set to be sold to Amici’s Partner Group, a Brix Holdings affiliate, Restaurant Business reported. The company previously declared bankruptcy in 2011, according to CISION PR Newswire and sought a buyer in 2019, but said coronavirus pandemic hindered sales proceedings, Restaurant Business reported.
“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,” George Michel, CEO of FIC Restaurants, said in a statement.
“We believe the voluntary bankruptcy filing and planned sale to a new, deeply experienced restaurant group will enable Friendly’s to rebound from the pandemic as a stronger business,” Michel said. He added that the company expects to preserve the company’s essential workers’ jobs.
Friendly’s files for bankruptcy to facilitate sale of restaurantshttps://t.co/mxN853Ronc
— 7News Boston WHDH (@7News) November 2, 2020
Over 300 Friendly’s locations shut down in the last ten years, Syracuse.com reported.
Brix and Friendly’s agreed to the merger at a price of $1,987,500 and will take on some liabilities, Restaurant Business reported. Friendly’s lenders waived the company’s debts in the deal.
Brix Holdings did not immediately respond to the Daily Caller News Foundation’s request for comment. Friendly’s directed the DCNF to their statement.
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