A popular food chain is close to filing bankruptcy, according to a new report. The food chain could file for Chapter 11 as early as next week. The restaurant chain was established in 1935 by two brothers and has owned by a private equity firm since 2007. The chain has been trying to do all it can to stay open such as marketing campaigns and even opening up express locations. Find out which food chain it is after the jump.
@Julie1205
Friendly’s is on the verge of bankruptcy, according to a report from the Wall Street Journal. The ice cream and casual dining chain will apparently file for Chapter 11 protection as early as next week. The Journal reports that the over 500 Friendly’s location will likely remain open during bankruptcy proceedings, with the help of a $75 million financing deal with Wells Fargo bank.
Friendly’s has been owned by private equity firm Sun Capital Partners since 2007. It was founded by brothers Prestley and Curtis Blake, pictured above, in 1935. In between the two owners, the chain was owned by several different partners, including, during the ’70s and ’80s, Hershey’s.
In recent years, Friendly’s has tried several schemes to drum up new revenue. In August of 2009, it opened the first of a planned chain of fast food restaurants called Friendly’s Express, assumedly a bid to capture business from customers hurt by the recession. But Friendly’s has been hampered by consistent complaints about service and food quality. A recent ranking of medium-sized restaurant chains by Consumer Reports placed Friendly’s dead last, with a score of 68, matched only by Buffalo Wild Wings and Joe’s Crab Shack.
Friendly’s bankruptcy rumors come on heels of several other high-profile restaurant chain bankruptcy filings. Sbarro, Charlie Brown’s Steakhouse and Fuddruckers have all filed papers in recent months. Like Quiznos, which has not officially filed for Chapter 11 protection despite persistant rumors, Friendly’s was not eligible for inclusion on a recent list of restaurant chains likely to go bankrupt because its stock is not publicly traded.
A slideshow about the corporate history of Friendly’s on the company website ends with the note, “With 75 years of creating great family experiences, Friendly’s is the brand that brings our guests quality meals, ice cream the way it should be, and everlasting family memories for generations to come.” Yesterday’s Friendly’s bankruptcy rumors make this conclusion seem almost laughably optimistic — and increasingly unrealistic.
HP
