This Beloved Restaurant Chain Just Filed for Bankruptcy
The 85-year-old eatery announced that it would "sell substantially all of its assets" amid the process.
Another popular American chain has filed for bankruptcy amid the coronavirus pandemic. Friendly's, the 85-year-old casual dining eatery specializing in classic American fare like hamburgers and sundaes, filed for Chapter 11 bankruptcy protection on Nov. 1, CNN reports. Read on for the details, and for another mainstay that's on the outs, check out This Beloved Coffee Chain Just Announced It's Filed for Bankruptcy.
Friendly's, which operates 138 restaurants in the United States, will "sell substantially all of its assets" to restaurant investment group Amici Partners Group, LLC, which operates chains including Red Mango, Smoothie Factory, and Souper Salad, the company announced in a statement.
Despite a relatively large portfolio of remaining restaurants, Friendly's will be selling its remaining assets to Amici Partners for just $2 million, Forbes reports. However, in doing so, the company hopes to avoid closing restaurants or laying off staffers. The existing sales plan is "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," George Michel, CEO of Friendly's' parent company FIC Restaurants, Inc., said in a statement.
Michel didn't mince words when it came to explaining the chain's reasoning for entering the bankruptcy process—the second time Friendly's has done so in a decade, with an additional filing in 2011. "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," Michel explained.
Friendly's isn't the only popular chain that's been forced into a dire predicament amid the coronavirus pandemic, however. Read on to discover which other businesses have made major shifts or closed their doors due to COVID. And for more insight into store closings near you, Your Starbucks Could Be One of the 800 Closing for Good.
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In October, beloved children's brand Carter's (which also owns OshKosh B'Gosh) announced that it would be shuttering 200 stores. Carter's CEO and chairman Michael Casey broke the news that approximately 60 percent of the closures would be carried out by the end of 2020. And for more brands closing up shop, This Beloved Beauty Brand Is Closing Stores Nationwide.
Popular Danish store Flying Tiger, known for its kitschy housewares and gift items, announced in mid-October that it would be closing all 13 of its stateside locations. "We have had our ups and downs but have always felt the love from our customers … and that love is reciprocated," the brand said in a statement.
Don't panic just yet: Dunkin' Donuts isn't closing all of its stores, but quite a few are shuttering for good. Amid the pandemic, the beloved coffee chain announced that it would be closing 800 stores by the end of 2020. And for more store closure news delivered directly to your inbox, sign up for our daily newsletter.
Banana Republic has become the weak link in Gap Inc.'s portfolio—which also includes Gap and Old Navy stores—accounting for just 15 percent of the brand's total sales in 2019. As such, Gap Inc. announced in October that it would be shuttering 130 Banana Republic stores for good.
Banana Republic isn't the only Gap Inc. brand that will be closing stores, however. The company will be closing a number of its stateside Gap stores in 2020, with more closures to come next year, as well. Gap Inc. also announced that it might be shuttering some of its Gap stores in France, Ireland, Italy, and the U.K. by 2021. And for more businesses ending their run, check out This Mall Mainstay May Be Closing a Store Near You.