The third sale of a restaurant chain in less than week comes with a new wrinkle. To facilitate its sale to Amici Partners Group, Friendly’s Restaurants has agreed to file for chapter 11 bankruptcy.
Friendly’s asked the bankruptcy court for a mid-December hearing to confirm the chapter 11 plan and approve the sale. The deal would be expected to close shortly after the hearing.
Nearly all of Friendly’s 130 corporate-owned and franchised restaurant locations are expected to remain open subject to COVID-19 limitations, and the transaction is expected to preserve thousands of corporate-owned restaurant team member and franchisee jobs, per a release announcing the transaction.
Friendly’s has sufficient cash on-hand to continue operations, meet its obligations to employees, franchisees and vendors, and ensure a seamless transition, the release also stated. Upon the sale closing, Amici expects to retain substantially all employees at Friendly’s corporate-owned restaurant locations.
Amici Partners is affiliated with BRIX Holdings, which owns such restaurant concepts as Red Mango Yogurt Café Smoothie & Juice Bar, Smoothie Factory Juice Bar, RedBrick Pizza Kitchen Cafe and Souper Salad.
This sale comes amid a spate of sales of restaurant companies. On October 30, Corner Bakery was acquired by Pandya Growth Restaurant Brands. And late last week, Inspire Brands reached an agreement to purchase Dunkin’ Brands for $11.3 billion.