Friendly's Restaurants' parent files for bankruptcy, announces sale

A Friendly’s Ice Cream Corp café is seen on the day the organization sought financial protection in Delray Beach, Florida.

Joe Raedle | Getty Images

FIC Restaurants, the parent organization of Friendly’s, said Sunday that it has petitioned for Chapter 11 insolvency security after the Covid pandemic made deals dive.

The organization will sell “substantially all” of its resources for Amici Partners Group. FIC assessed that its resources were worth $1 million to $10 million in its chapter 11 recording. Inviting’s is requesting the liquidation court to endorse of the deal in mid-December.

The East Coast eatery network, which is most popular for its frozen yogurt, joins the army of cafés that have sought financial protection in the wake of the pandemic, including Chuck E. Cheddar’s parent organization and Ruby Tuesday. More are required to follow as Covid-19 cases flood and chilly climate hits interest for outside eating.

“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,” FIC Restaurants CEO George Michel said in an announcement.

Virtually the entirety of Friendly’s 130 eateries are required to stay open, despite the fact that that is dependent upon Covid-19 limitations. Café provider U.S. Nourishments is FIC’s biggest leaser.

This isn’t Friendly’s first outing to chapter 11 court. Well disposed’s and its auxiliaries, which incorporated its frozen yogurt business and café tasks, declared financial insolvency in 2011. Dignitary Foods, the biggest milk maker in the U.S., purchased the frozen yogurt business in 2016, three years before it sought financial protection itself.