Parent Company of Friendly's Files for Bankruptcy
FIC Restaurants, the parent company of Friendly's, filed for Chapter 11 bankruptcy protection, according to CNBC.
According to the filing with courts on Monday, the coronavirus pandemic decimated sales. Now, the company will liquidate its assets to Amici Partners Group for around $2 million. In FIC's bankruptcy filing, which it hopes to get approved in mid-December, it estimated its assets were worth between $1 million to $10 million.
FIC is not alone in being a restaurant filing for bankruptcy. The industry as a whole was severely impacted by the pandemic. Other popular names such as Chuck E. Cheese and Ruby Tuesday recently filed for bankruptcy as well. Unfortunately, more restaurants are expected to join the growing trend as COVID-19 continues to spread and cold weather affects outdoor dining capabilities.
“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,” FIC Restaurants CEO George Michel said.
Although, nearly all of Friendly's restaurants, around 130, will remain open for time being. Friendly's filed for bankruptcy in 2011 as well.