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 Sunday that it has filed for Chapter 11 bankruptcy protection Coronavirus pandemic caused sales to decline.
The company will sell “substantially all” of its assets to Amici Partners Group. FIC estimated that its assets were valued at between $ 1 million and $ 10 million at the time of filing for bankruptcy. Friendly’s is asking the bankruptcy court to approve the sale in mid-December.
The east coast chain of restaurants best known for their ice cream, joins legion of restaurants that have filed for bankruptcy post-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 provider US food is the largest believer in FIC.
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.