Unfriendly Economy Drives Friendly's Owner Into Ch. 11

Law360, New York (October 5, 2011, 2:08 PM EDT) -- Friendly Ice Cream Corp., which runs the restaurant chain Friendly's, said Wednesday it would shutter 63 eateries as part of its bankruptcy, and enter into an asset sale to a unit of private equity firm Sun Capital Partners Inc.

In its Chapter 11 filing in Delaware bankruptcy court, the Wilbraham, Mass.-based casual dining chain cited high unemployment and spiking prices of cream, the key ingredient in ice cream, and inflated rents for restaurant locations as the primary culprits for its bankruptcy. It has been operating Friendly's...
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