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Friendly’s, which got its start in Wilbraham, Massachusetts, filed for Chapter 11 bankruptcy late Sunday, Nov. 1, according to a press release. In the filing, owners blamed, in part, decreased revenue due to COVID-19.
In the filing, Friendly’s listed its liabilities at anywhere between $50 million and $100 million with an estimated $1 million to $10 million in assets.
FIC Restaurants Inc., which owns the Friendly’s brand, is planning to sell its assets to Amici Partners Group. Those assets include nearly 130 Friendly’s Restaurants which are expected to stay open.
The sale is expected to save some of the restaurants and employee jobs.
“Importantly, it is also expected to preserve the jobs of Friendly’s restaurant team members, who are the heart and soul of our enterprise and have been critical to the progress we have made in transforming this iconic brand,” the press release said.
Friendly’s has been reducing the number of restaurants it has for years as the restaurant brand finds its place in the market. The group laid off nearly 200 employees in April due to declining sales brought on by COVID-19.
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