CHAPTER 11

Friendly’s Filing for Bankruptcy: Report

It looks like it wasn’t such a friendly place for ice cream after all. Friendly’s Ice Cream Corp. is reportedly filing for bankruptcy, sources told The Wall Street Journal Thursday. Sources said the Massachusetts-based restaurant chain could seek Chapter 11 protection from its creditors as soon as next week, and the company is reportedly in talks with Wells Fargo for $70 million in debtor-in-possession financing. Friendly’s employs about 10,000 people in more than 500 locations, mainly along the East Coast. Two brothers started Friendly’s in 1935 solely as an ice cream shop, but began selling food and expanding with new locations throughout the Eastern U.S. It has changed hands several times, and in 2007 Florida-based buyout firm, Sun Capital Partners, Inc., bought all of its stock.