Pleasant’s Eating places mother and father file for chapter and announce a $ 2 million sale
A Friendly’s Ice Cream Corp restaurant can be seen on the day the Delray Beach, Florida company filed for bankruptcy.
Joe Raedle | Getty Images
FIC Restaurants, the parent company of Friendly’s, announced it had filed for Chapter 11 bankruptcy protection after the coronavirus pandemic resulted in a drop in sales.
The company will sell essentially all of its assets to Amici Partners Group for nearly $ 2 million, according to a court file filed Monday. FIC, in its bankruptcy filing on Sunday, estimated its assets were valued at between $ 1 million and $ 10 million. Friendly’s is asking the bankruptcy court to approve the sale in mid-December.
Best known for its ice cream, the east coast restaurant chain is joining the legion of restaurants that have filed for bankruptcy after the pandemic, including parent company Chuck E. Cheese and Ruby Tuesday. More are expected to follow as Covid-19 cases rise and cold weather affects demand for al fresco dining.
“Unfortunately, as with many restaurant operations, our progress was suddenly interrupted by the catastrophic effects of COVID-19, which resulted in a decline in sales as the dine-in was shut down for months and reopened with limited capacity,” said George Michel, CEO from FIC Restaurants said in a statement.
Almost all of Friendly’s 130 restaurants are expected to remain open, although this is subject to Covid-19 restrictions. Restaurant operator US Foods is FIC’s largest creditor.
This isn’t Friendly’s first trip to the bankruptcy court. Friendly’s and its subsidiaries, which included the ice cream and restaurant businesses, filed for bankruptcy in 2011. Dean Foods, the largest milk producer in the United States, bought the ice cream store in 2016, three years before it went bankrupt itself.