How Friendly's Restaurants Keep Coming Back Even After Bankruptcy

If you grew up on the East Coast, the Northeast in particular, then you may be familiar with Friendly's — it is the maker of the summer staple Wattamelon Roll, Celebration Roll, and Chocolate Krunch ice cream cake. Founded by two brothers in 1935 in Springfield, Massachusetts, as a humble ice cream shop, it grew over the years to become a popular regional fast-casual chain serving family-friendly American food. Of course, it's still well known for its ice cream. At its peak in the 1970s, Friendly's had grown to around 500 restaurants.

Since then, its fortunes have declined, to the point where it has filed for bankruptcy twice, first in 2011 and again in 2020. It's certainly not the only restaurant chain to have gone bankrupt more than once, as Rubio's Coastal Grill has also done so twice, as has Bertucci's Italian Restaurant (which filed a whopping three times in 2018, 2022, and 2025). Heck, even food-adjacent brands like Tupperware have filed for bankruptcy. But, as of writing, Friendly's is still in business, even if it's reduced. What's the key to how Friendly's Restaurants keep coming back after bankruptcy? Unlike some other establishments, it was able to either successfully restructure or sell its assets after filing for Chapter 11 bankruptcy.

Friendly's first filed for Chapter 11 bankruptcy in 2011, citing "challenges of the current economic downturn, significantly increased costs, particularly in commodities such as cream, rents that exceed current market rates, and certain of the Company's current unrelated liabilities." as per a press release. The company restructured by closing 63 restaurants while keeping the remaining 424 open, while also shedding certain debt. By 2016, when it sold its ice cream business to major milk producer Dean Foods, it was operating more than 260 stores. Things were looking up, to the point where Friendly's even announced that it was expanding.

Then the pandemic hit. Sales at Friendly's and throughout the restaurant industry dropped significantly. Soon, Friendly's filed for Chapter 11 bankruptcy again in 2020 and was purchased in 2021 by Amici Partner Group/Brix Holdings, which committed to turning the chain around. It announced a Friendly's comeback in 2024, after the closure of 23 restaurants. Part of this revival included a remodel of existing locations, a new branding approach, and changes to the menu, along with plans to open locations in Texas and Florida. Since then, the company has indeed opened locations in Orlando, but has also closed additional restaurants for a total of only 89 locations as of March 2025. Whether or not Friendly's style of financial management and luck holds out long-term remains to be seen.