Friendly's Close to Bankruptcy: Report

Fox Business ^ | 0/29/11 | Reuters

[Dr. Scarpetta]

Burger and ice cream chain Friendly's is close to filing for bankruptcy and may try to sell itself at auction, the Wall Street Journal reported on Thursday.

The Wilbraham, Massachusetts-based restaurant chain may file for bankruptcy as early as next week and is in talks with Wells Fargo & Co on a $70 million loan to keep it afloat during the process, the Journal reported, citing sources familiar with the matter.

According to the report, under bankruptcy, Friendly's would roll some of its existing debt into a new loan from Wells Fargo.

The loan would also include $25 million in new funds. Friendly's would seek an auction to sell itself out of bankruptcy, the report said.

Friendly's would be the latest in a number of restaurant chains, including Sbarro, Fuddruckers and Charlie Brown's Steakhouse, to file for bankruptcy because of the economic downturn and a drop in consumer spending.

[libertarian27]

Shrubbery Sign on the Massachusetts Turnpike in Wilbraham

Been there for decades

[napscoordinator]

Actually I retired from the Navy and live in Annapolis, MD. I was in Allentown in June.....Did you know I graduated from Allentown Central Catholic in 1987? I actually grew up in Whitehall.

[CaptainK]

Bellmore NY. On Long Island.

[SueRae]

And on on Lancaster Ave. in Frazer.

[Dr. Scarpetta]

I was in Allentown in June.....Did you know I graduated from Allentown Central Catholic in 1987? I actually grew up in Whitehall.

I was not aware of that. I'm in Moore Twp, which is a 25 minute drive to the Lehigh Valley Mall.

[Dr. Scarpetta]

There’s another Friendly’s on Rte. 611, outside of Stroudsburg. Sometimes we stop in there when we go to The Crossings Outlets in Tannersville. (I-80)

[Dr. Scarpetta]

Friendly’s Restaurant Weighs Chapter 11

http://online.wsj.com/article/SB10001424052970204138204576601232726499962.html

(I was able to view this article without being a subscriber.)

[PapaBear3625]

Although the one thing that always annoyed me was how they seemed geared to an older, slower time. One when people would be willing to sit around for an hour (or more) and take their time while eating. This was the case with EVERY Friendly's I've eaten in since those high school days.

That's been my experience, so I never go if I don't have time on my hands. Their clientele seems to be unhurried retirees.

[Dr. Scarpetta]

Nice...