A Friendly’s Ice Cream Corp dining establishment is seen on the day the business applied for insolvency in Delray Beach, Florida.
Joe Raedle | Getty Images
FIC Restaurants, the moms and dad business of Friendly’s, stated it has actually applied for Chapter 11 insolvency security after the coronavirus pandemic triggered sales to plunge.
The business will offer considerably all of its properties to Amici Partners Group for almost $2 million, according to a Monday court filing. FIC approximated in its Sunday insolvency filing that its properties deserved $1 million to $10 million. Friendly’s is requesting the insolvency court to authorize of the sale in mid-December.
The East Coast dining establishment chain, which is best understood for its ice cream, signs up with the legion of dining establishments that have actually applied for insolvency in the wake of the pandemic, consisting of Chuck E. Cheese’s moms and dad business and Ruby Tuesday. More are anticipated to follow as Covid-19 cases rise and winter strikes need for outside dining.
“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 stated in a declaration.
Nearly all of Friendly’s 130 dining establishments are anticipated to stay open, although that goes through Covid-19 limitations. Restaurant provider U.S. Foods is FIC’s biggest lender.
This isn’t Friendly’s very first journey to insolvency court. Friendly’s and its subsidiaries, that included its ice cream service and dining establishment operations, applied for insolvency in 2011. Dean Foods, the biggest milk manufacturer in the U.S., purchased the ice cream service in 2016, 3 years prior to it applied for insolvency itself.