J & B Restaurant Partners of Long Island II, LLC and certain affiliates, owners of 37 Friendly’s restaurants in New York, New Jersey and Connecticut, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code today as part of its pre-negotiated and comprehensive restructuring plan. The filing, done in cooperation with our franchisor and GE Capital Franchise Finance, will allow the Long Island based Company to close unprofitable restaurants, reduce outstanding debt, and quickly emerge from bankruptcy as a much stronger company.
“The closing of restaurants is a very difficult but necessary step in positioning J & B for financial health and a key component of the restructuring plan. Our partnership with Friendly’s and GE Capital will allow us to remodel existing restaurants and reduce debt. Throughout this process we will continue to provide great food and ice cream, and friendly service to our customers,” stated Dawn Petite, Chief Operating Officer.
GE Capital will provide a debtor-in-possession financing facility to enable normal operation of the Company’s restaurants, including the normal course payments to employees. The Long Island based Company, owned since 2001, expects to exit bankruptcy over the next six months and to remodel at least 11 restaurants over three years.
The bankruptcy filing does not affect Friendly’s Ice Cream, LLC, its affiliates and other Friendly’s franchisees or other J & B affiliates in non-related businesses.
Mastodon Ventures, Inc., a leading advisor to restaurant companies, has acted as the exclusive strategic advisor and investment banker to the Company (mastodonventures.com). Huron Consulting Group is providing financial advisory services to guide the Company through its reorganization (huronconsultinggroup.com).
Logos, product and company names mentioned are the property of their respective owners.