Friendly's To Declare Bankruptcy

Law360, New York (September 30, 2011, 3:02 PM EDT) -- Casual restaurant chain Friendly's is gearing up to declare Chapter 11 bankruptcy and could file documents as early as Monday, the Wall Street Journal reported Thursday.

Friendly Ice Cream Corp., which operates more than 500 restaurants, intends to sell itself through a bankruptcy auction, the Journal said, citing sources familiar with the matter.

A bankruptcy filing would make the chain the latest casualty in the casual dining industry, which has suffered the double-hit of a slumping economy that forces patrons to eat at home more often...
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