Friendlys files for bankruptcy a second time, plans to sell restaurants to investor group

Friendlys, the East Coast restaurant chain known for its ice cream and diner fare, has filed for voluntary bankruptcy amid declining revenue due to the pandemic.

Over the last two years, Friendlys has made important strides toward reinvigorating our beloved brand in the face of shifting demographics, increased competition, and rising costs, Friendlys CEO George Michael said in a press release. 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.

The 85-year-old chain intends to sell its assets to Amici Partners Group, an investor group affiliated with Brix Holdings, the restaurant company behind Red Mango, Smoothie Factory, and other franchises. Restaurant Business reports that the selling price will fall just under $2 million. Friendlys boasted more than 500 locations a decade ago, before it first filed for bankruptcy in 2011; currently, the chain is down to 130. Nearly all of those locations are expected to remain open as the bankruptcy and sale proceedings continue; afterward, Amici expects to retain employees at corporate-owned restaurants, per the release.

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Friendlys Will Sell to Investment Group for Less Than $2 Million - Eater