Friendly's restaurant chain files for Chapter 11 bankruptcy protection amid pandemic woes

The family restaurant chain known as Friendly's now finds itself in the decidedly unfriendly territory of a bankruptcy court.

FIC Restaurants, the company that owns the chain, filed for Chapter 11 bankruptcy protection late Sunday, becoming the latest in a series of casual dining companies to falter amid the pandemic.

The corporate owner said it had agreed to a deal to sell its assets to Amici Partners Group, which is affiliated with BRIX Holdings, a company that handles restaurant franchising. 

"Nearly all" of Friendly's 130 company-owned and franchised locations will remain open, FIC said in a statement. The chain is known for its sandwiches, burgers and ice cream desserts.

The move comes amid a flurry of bankruptcy filings for restaurant chains, including most recently the companies that own Ruby Tuesday and California Pizza Kitchen. Restaurants that rely heavily on sit-down dining have generally fared poorly amid restrictions on their capacity and fears of the coronavirus as the pandemic continues.

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But the casual dining sector has been struggling for other reasons in recent years, as well, including the rise of fast-casual competitors, food prices and meal-kit alternatives.

“We believe the voluntary bankruptcy filing and planned sale to a new, deeply experienced restaurant group will enable Friendly’s to rebound from the pandemic as a stronger business, with the leadership and resources needed to continue to invest in the business and serve loyal patrons, as well as compete to win new customers over the long-term,” FIC CEO George Michel said in a statement.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.