Friends is emerging from insolvency, closing down additional shops
Friendly’s Ice Cream company closed 37 more shops yesterday, including 10 in Massachusetts, before it came out of the security against bankruptcy, stated in a statement.
Wilbraham’s ice cream network has now shut down about one hundred stores since an application for bankruptcy protection was filed in October – about 20 percent of its location. According to Friendly’s, the recent closures of stores will result in the loss of job for approx. 780 people, about 20 people in each shop. These include Friendly’s shops in Shrewsbury, Westborough, Bedford, Holyoke, Mansfield, Springfield and Great Barrington.
The company Friendly’s, a private equity firm owned by Sun Capital, stated in a press release that it was trying to develop more favorable lease terms in locations where it considered that its rents did not reflect current market conditions and made it difficult to run restaurants. Friendly’s company had restructured lease agreements for some of these locations, but could not enter into agreements with landlords in 37 restaurants, so she decided to close them at the end of the working day on Sunday.
In a statement, Harsha V. Agadi said: “We regret that this decision has become necessary, and we appreciate the hard work and dedication of the Friendly’s employees at each of the affected locations,” (…) “We intend to accommodate as many as possible from closed locations to nearby operating restaurants, where available.”