Friendly’s Restaurant Chain Files For Chapter 11 Bankruptcy
Ice cream chain Friendly’s filed for Chapter 11 bankruptcy on Wednesday, only a short time after the company ranked last on a recent survey for value, service and atmosphere.
Speaking about the closing of various locations one fan of Friendly’s told NPR:
“Oh, that’s so sad. I love Friendly’s.”
According to one expert:
“Friendly’s is an anachronism, really. It’s a restaurant model that is no longer viable.”
Specifically the company which is a full service chain simply isn’t able to compete in many markets against fast food chains that operate on better margins with faster service.
It doesn’t help that many of the chains restaurants according to a recent survey are “run down” with one customer saying noting:
“I mean, you get a sticky feeling when you go in there. Your elbows stick to the table.”
Not all Friendly’s locations are closing, instead under their restructuring plan 63 of 500 locations will be permanently shut down resulting in the loss of nearly 1,200 jobs.
According to a release of the company’s financial situation the chain has annual sales of $700 million.
Friendly’s has been under the control of Sun Capital Partners Inc., since 2007 when the Florida buyout firm purchased the chain for $337.2 million.
Executives at Friendly’s are now faced with another dilemma, getting customers to return. In the recent survey only one chain ranked lower in terms of customers who said they would return for another meal.
Are you a fan of the Friendly’s chain or do you think they need to get their act together before you would be willing to give them another try.