BOSTON (CBS) – A popular local fast food restaurant chain is reportedly ready to file Chapter 11 bankruptcy.
Friendly’s ice cream of Wilbraham is in talks with Wells Fargo bank for about $70 million in financing that would keep the chain of 500 restaurants operating during its bankruptcy.
The Wall Street Journal is quoting people familiar with the talks as saying the filing could come as early as next week.
Friendly’s is owned by Sun Capital Partners of Florida, which bought the local chain in 2007, just before the economic downturn.
Friendly’s began as a small ice cream shop in Springfield during the Great Depression.
The chain now has about 10,000 employees.