Friendly Ice Cream Corporation announced today that it is filing for Chapter 11 Bankruptcy protection. will close 63 underperforming stores, including the one in West Hartford Center – one of seven in Connecticut which will shut its doors.
The remaining 424 Friendly's restaurants will remain open for business during the financial restructuring. There is expected to be no impact to manufacturing and distribution operations, according to a company press release.
Friendly's has secured approximately $70 million in financing, which will allow the company to meet its ongoing obligations during the restructuring and to continue paying employee salaries and benefits. Gift cards will continue to be honored.
The decision to file for bankruptcy was driven largely by the challenges of the current economic downturn and significantly increased costs, particularly in commodities such as cream, according to the release.
The following Connecticut stores will close:
Boston Post Road, Guilford
Buckland Mall, Manchester
Main Street, Meriden
Storrs Road/University Plaza Storrs
East Main Street, Torrington
Waterbury Shopping Plaza, Waterbury
South Main Street, West Hartford