A Friendly’s Ice Cream Corp restaurant is seen on the day the corporate filed for chapter in Delray Beach, Florida.
Joe Raedle | Getty Images
FIC Restaurants, the parent firm of Friendly’s, mentioned it has filed for Chapter 11 chapter safety after the coronavirus pandemic brought on gross sales to plummet.
The firm will promote considerably all of its property to Amici Partners Group for practically $2 million, in response to a Monday courtroom submitting. FIC estimated in its Sunday chapter submitting that its property have been value $1 million to $10 million. Friendly’s is asking for the chapter courtroom to approve of the sale in mid-December.
The East Coast restaurant chain, which is finest identified for its ice cream, joins the legion of eating places which have filed for chapter within the wake of the pandemic, together with Chuck E. Cheese’s parent firm and Ruby Tuesday. More are anticipated to observe as Covid-19 circumstances surge and chilly climate hits demand for out of doors 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 mentioned in an announcement.
Nearly all of Friendly’s 130 eating places are anticipated to stay open, though that’s topic to Covid-19 restrictions. Restaurant provider U.S. Foods is FIC’s largest creditor.
This is not Friendly’s first journey to chapter courtroom. Friendly’s and its subsidiaries, which included its ice cream enterprise and restaurant operations, filed for chapter in 2011. Dean Foods, the biggest milk producer within the U.S., purchased the ice cream enterprise in 2016, three years earlier than it filed for chapter itself.