October 6, 2011 by staff
Bankruptcy Protection, The father of the restaurant chain called Friendly bankruptcy protection under Chapter 11 on Wednesday and said it has closed 63 of its stores. Each store employs about 20 people, so that around 1260 jobs were lost.
The company’s 76-year-old, known for its ice cream and burgers is the latest chain restaurant to present forbankruptcy, as consumers continue to eat less, a habit he took during the recession and food costs remain high .
Other companies that have sought bankruptcy protection this year include Perkins & Marie Callender, Real Mex, which operates the El Torito and Chevys Fresh Mex Restaurant, and SSI Group Holding Corp., which operates Souper Salad and Grandy’s restaurant.
Friendly said the economic crisis, coupled with higher costs and high rents led to bankruptcy.
“The strategic decision to pursue a financial restructuring that will allow us to proactively improve our financial position and quickly,” said CEO Harsha V. Agadi.
Icy environment Corp., based in Wilbraham, Massachusetts, says it has secured financing and 70 million and that its remaining 424 restaurants remain open and pay employee salaries and benefits of reorganizing underbankruptcy protection. Gift cards will be honored. Easy now employs about 9,000 workers.
The current owners, Sun Capital Partners, will lead, or “pretext” bidders in an auction process.
The company declared bankruptcy in the Bankruptcy Court of the United States for the District of Delaware.
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