October 5, 2011
Friendly's files for bankruptcy
By The Mainebiz News Staff
Massachusetts-based Friendly's has filed for Chapter 11 bankruptcy protection and is closing 63 restaurants, including three in Maine.
Friendly's locations in Freeport, Ellsworth and Lewiston have shuttered, each employing about 20 people, according to the Bangor Daily News. Friendly Ice Cream Corp. based in Wilbraham, cited the economy, higher costs and high rents for its decision to file for bankruptcy. The company has secured $70 million in financing and will keep its 424 remaining restaurants open as it reorganizes.
Its current owners, Sun Capital Partners, will be the lead, or "stalking horse" bidder, in an auction process.
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