On behalf of Law Offices of Mark M. Kratter, LLC on November 09, 2011
Residents of Southport, Connecticut, were likely shocked when the sign was taken down from the restaurant Friendly's, a fixture on the local restaurant scene. The Southport-area restaurant has closed after nearly 25 years of serving food to the community, according to the Connecticut Post.
Friendly's Ice Cream Corp., which owns about 500 Friendly's locations nationwide, has filed for Chapter 11 bankruptcy. The company on Nov. 1 won approval in U.S. Bankruptcy Court in Wilmington, Delaware, on Nov. 1 to hold an asset auction. The auction, where the company will be sold off, will take place on Dec. 22.
The Southport Friendly's opened in June 1987. It is owned by Ronkonkama, New York-based franchisee J&B Restaurant Partners. J&B bought 32 locations including several in Connecticut. Their plan was to build 19 more outlets over the next seven years, according to the Post. A sign on the door directs the restaurant's former patrons to visit the restaurant's other nearby locations in Darien and Bridgeport.
The decision to file for bankruptcy comes as a result of the poor economic climate, rising operations costs and high rent. The company, which has its roots in nearby Springfield, Massachusetts, will close 63 locations. The company secured a $71.3 million loan to continue operations at the remaining locations during the bankruptcy process.
The closures will hopefully help the company cut costs and improve operational efficiencies so that all remaining locations can be better served. Due to the tough economy, many people and businesses have had to file for bankruptcy in order to achieve a fresh start financially. There is no shame in declaring bankruptcy, and an experienced attorney can lend advice to help people get through the process.
Source: Bloomberg, "Friendly Ice Cream Wins Court Approval to Hold Asset Auction," Michael Bathon, Nov. 2, 2011
