This story has been updated to include a statement from Friendly Ice Cream Corp.
A report from The Wall Street Journal Thursday said Friendly Ice Cream Corp., the parent to the 500-unit Friendly’s family-dining chain, could seek Chapter 11 bankruptcy protection as early as next week, and hold an auction to sell the chain.
The report cited “people familiar with the matter,” and reported that Wells Fargo & Co. is in talks to provide Friendly Ice Cream with about $70 million in financing to remain afloat during bankruptcy proceedings.
Wilbraham, Mass.-based Friendly Ice Cream said it does not comment on rumors in the media or marketplace.
“Like many restaurant chains, we are feeling the impact of the economic downturn and rising commodity prices and a challenging marketplace,” the spokesperson said in a statement sent to Nation’s Restaurant News. “We are working with our lenders, board and management team to explore alternatives to strengthen our financial base.”
Nation’s Restaurant News also contacted Friendly's private-equity owner, Boca Raton, Fla.-based Sun Capital Partners, but did not reach officials for comment.
Sun Capital owns 10 restaurant brands, including Boston Market, Smokey Bones Bar & Fire Grill and Fazoli’s. Another holding, Real Mex Restaurants, which operates the Chevys, El Torito and Acapulco brands, is in the midst of a financial restructuring.
The number of restaurant bankruptcies continues to increase as companies try to navigate slowed sales, higher costs and toppling levels of debt. Most recently Sbarro Inc., Perkins & Marie Callender’s and Pat & Oscars each filed for Chapter 11 bankruptcy.
RELATED:
• Pat & Oscar’s files for Ch. 11
• Sbarro files plans to exit Ch. 11
• Restaurant bankruptcy hit list
Contact Sarah Lockyer at sarah.lockyer@penton.com.
Follow her on Twitter: @slockyerNRN
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Post a CommentThe Wall Street Journal
The Wall Street Journal Thursday said Friendly Ice Cream Corp., the parent to the 500-unit Friendly’s family-dining chain, could seek Chapter 11 bankruptcy protection as early as next week, and hold an auction to sell the chain.
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Nation’s Restaurant News also
Nation’s Restaurant News also contacted Friendly's private-equity owner, Boca Raton, Fla.-based Sun Capital Partners, but did not reach officials for comment.loans with no credit check
This story has been updated to include a statement from Friendly
I think that this could certainly be a good idea and I am sure that there will be a lot of people who will be interested in this.
Oferte Aer
It is really sad that they
It is really sad that they have to sell their chain due to bankruptcy. Also they are a Famous chain of Dining and people will definitely miss them. There are a lot of business studies online which could help them.
Food brand protectionism VS retail food brand evolution.
Restaurant operators must evolve product mix and menu mix in order to keep up with the changing consumer. Family after family is expressing that they are now becoming exasperated, worried and directly affected by the prolonged economic down turn.
Grocery stores are providing more and more ready-2-eat and heat-N-eat meal component options. Chain Drug stores are now selling ready-2-eat fresh prepared food and Convenience stores continue up grading fresh and prepared meal offerings. Restaurateurs must rapidly readjust menus to reflect the increased in fresh prepared ready-2-eat and heat-N-eat meal competition and new points of food distribution.
If success leaves clues one of them is follow the customer as fast as you can. If you do not your brand may very well loose its consumer relevance. During the past three years the grocerant niche has expanded and excelled. Companies and brands that are or have been practicing brand protectionism are losing market share to those practicing brand evolution.
Shame on "mismanagement teams"
Shame on the continued "mismanagement teams" at Friendly's, Pat & Oscars and others in recent months for driving their once regaled brand legacies into oblivion, with not a care in the world about the impact their "indecision (s)" have brought upon employees, communities and vendors.
Both brands were built from the ground up, with hard work and attention to detail.
What followed were insular management teams that rejected any offers for fresh and objective outside counsel.
Whether it be ego or just plain refusal to think outside the corner office walls, all chains and independents should look to shore up and/or create a solid group of outside, objective advisors to keep from the same fate.
Tom Kelley
Concept Branding Group
San Diego
RE: Shame on 'mismanagement teams'
Tom,
I agree. I continually see brands moving along a similar path. The unwillingness to change or, more appropriately, adapt and innovate eats away at market share and brand image.
Kimberly Nasief
Measure Consumer Perspectives
“We are working with our
“We are working with our lenders, board and management team to explore alternatives to strengthen our financial base.”
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