ETF News

UPDATE 1-Friendly's emerges from Chapter 11

Jan 9 (Reuters) - Friendly Ice Cream Corp said on Monday it completed its restructuring, three months after the burger and ice cream chain filed for bankruptcy, hurt by weak consumer spending and higher costs.

The company said it will close 37 restaurants where it was unable to negotiate favorable leases, in addition to the 64 underperforming stores included in its restructuring plan.

The chain owned or franchised about 490 restaurants when it filed for bankruptcy in October.

Late December, a federal judge ruled that Friendly’s could sell itself back to private equity firm Sun Capital Partners Inc in exchange for debt forgiveness.

Friendly’s was one among many restaurant chains felled by the recession -- including Perkins & Marie Callender’s Inc, Sbarro Inc, Fuddruckers and Charlie Brown’s Steakhouse.