Friendly's Emerges From Chapter 11

Restructuring process took three months
Posted January 10, 2012

Friendly Ice Cream Corp. (Wilbraham, Mass.) and its subsidiaries, which operate Friendly's restaurants and a nationwide distributor of ice cream products, has emerged from voluntary Chapter 11 by consummating the sale of its business to Friendly's Ice Cream, LLC and its subsidiaries.

"The completion of our financial and operational restructuring in just over three months is a significant accomplishment,” says chairman and ceo Harsha Agadi. “As a now better capitalized company, more able to compete in the casual family restaurant sector, we look forward to building on Friendly's rich 76-year-old history."

Since entering Chapter 11 in October 2011, Friendly's has initiated a turnaround strategy designed to improve operations across all business segments. Those efforts include improvements in customer satisfaction and speed of service, menu enhancements, further partnership with new and existing franchisees, expansion of the retail business and other investments in overall guest experience.

During the restructuring, the company closed 37 restaurants.

Friendly's filed to reorganize under Chapter 11 on October 5, 2011, in the United States Bankruptcy Court for the District of Delaware.