The restaurant industry under pressure for facing Chapter 11
Corporate bankruptcies tracked off from the stages of crest of 2009 and 2010, this year but have begun to mount again recently among fears of a double-dip recession. American Airlines parent AMR as well as Eastman Kodak, famed imaging and photography company were among those facing a fluctuating share price. The restaurant industry looks mostly under pressure this week, with several major chains joining Perkins & Marie Callender's, Sbarro, Charlie Brown's Steakhouse, and Fuddruckers in Chapter 11. The Friendly Ice Cream Corporation filed for bankruptcy in Delaware on October 5. In 2007, Sun Capital Partners bought Friendly's for $337.2 million. But it has announced to close 63 stores due to sour economy, rising food costs, and a $250 million debt load that led Friendly's to fall on hard times. While, Kirkland & Ellis restructuring partners Ross Kwasteniet and James Stempel are advising Friendly's in its Chapter 11 case; Morgan, Lewis & Young Conaway Stargatt & Taylor are advising Sun Capital Partners.