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I haven't read the article, but can't a business operate while undergoing Bankruptcy? Didn't Delta Airlines (and Northwest) use Bankruptcy to restructure a number of years ago? Or is Friendly's beyond the point of no return? If that's the case, I better go out and stock up on Forbidden Chocolate.
I haven't read the article, but can't a business operate while undergoing Bankruptcy? Didn't Delta Airlines (and Northwest) use Bankruptcy to restructure a number of years ago? Or is Friendly's beyond the point of no return? If that's the case, I better go out and stock up on Forbidden Chocolate.
Yes, people seem to forget that there are multiple kinds of bankruptcy. Chapter 13 (liquidation) is only one form of bankruptcy and usually only happens when all measures to save the company have failed. Friendly's is going to be filing for Chapter 11 which would allow the company to try and reform it's finances, and bring in experts to assist the process to avoid having to file for Chapter 13. Their locations would continue to operate during this process. There is also something called Chapter 14 under which the corporate owned locations would close, but the franchised locations would remain open; this is what happened with Bennigan's in 2008. The situation with Borders Books was completely different then what is happening with Friendly's.
Could they completely fail and have to file for Chapter 13? Yes, but it wouldent happen for months and maybe not for a year or so. Maybe it won't even happen at all and they will be able to reform their finances and continue to serve great ice cream for years to come. It's simply too early to tell.
Yes, people seem to forget that there are multiple kinds of bankruptcy. Chapter 13 (liquidation) is only one form of bankruptcy and usually only happens when all measures to save the company have failed. Friendly's is going to be filing for Chapter 11 which would allow the company to try and reform it's finances, and bring in experts to assist the process to avoid having to file for Chapter 13. Their locations would continue to operate during this process. There is also something called Chapter 14 under which the corporate owned locations would close, but the franchised locations would remain open; this is what happened with Bennigan's in 2008. The situation with Borders Books was completely different then what is happening with Friendly's.
Could they completely fail and have to file for Chapter 13? Yes, but it wouldent happen for months and maybe not for a year or so. Maybe it won't even happen at all and they will be able to reform their finances and continue to serve great ice cream for years to come. It's simply too early to tell.
Thank you for the explanation.
Now to go out and buy lots of Forbidden Chocolate -- just in case.
Yes, people seem to forget that there are multiple kinds of bankruptcy. Chapter 13 (liquidation) is only one form of bankruptcy and usually only happens when all measures to save the company have failed. Friendly's is going to be filing for Chapter 11 which would allow the company to try and reform it's finances, and bring in experts to assist the process to avoid having to file for Chapter 13. Their locations would continue to operate during this process. There is also something called Chapter 14 under which the corporate owned locations would close, but the franchised locations would remain open; this is what happened with Bennigan's in 2008. The situation with Borders Books was completely different then what is happening with Friendly's.
Could they completely fail and have to file for Chapter 13? Yes, but it wouldent happen for months and maybe not for a year or so. Maybe it won't even happen at all and they will be able to reform their finances and continue to serve great ice cream for years to come. It's simply too early to tell.
Here is a list of the Friendly's that are closing...it looks like all the ones in NY are in the Capital District...
Glance a list of 63 Friendly’s stores closed ahead of Chapter 11 filing - The Washington Post (http://www.washingtonpost.com/business/glance-a-list-of-63-friendlys-stores-closed-ahead-of-chapter-11-filing/2011/10/05/gIQAtNlNNL_story.html - broken link)
Here is a list of the Friendly's that are closing...it looks like all the ones in NY are in the Capital District...
Glance a list of 63 Friendly’s stores closed ahead of Chapter 11 filing - The Washington Post (http://www.washingtonpost.com/business/glance-a-list-of-63-friendlys-stores-closed-ahead-of-chapter-11-filing/2011/10/05/gIQAtNlNNL_story.html - broken link)
Im surprised that no Long Island/NYC locations are on that list. There has been rumors going around for years that the Bay Shore Friendly's is going to close but it hasent happened yet.
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