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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.