UPDATED: City's Friendly's Restaurant Will Close

The sign on the front door of the Friendly's Restaurant on Lafayette Road says it all: "Thank you for your patronage. This restaurant has permanently closed."

Friendly's Restaurant's parent company filed for Chapter 11 bankruptcy protection today and the Portsmouth restaurant is one of 63 that Friendly's Ice Cream Corporation of Wilbraham, Mass., that shuttered while 423 Friendly's restaurants will remain open as a result of the company's restructing plans, accoridng to PR Newswire. An undetermined number of full-time and part-time employees who worked at the Portsmouth eatery also lost their jobs.

This morning there were a few cars in the restaurant's parking lot, but there was no one available to speak to about the eatery's sudden closure.

As part of its plan, Friendly's has secured approximately $70 million in debtor-in-possession (DIP) financing, which, along with the company's cash flow, will provide the working capital necessary to meet its ongoing obligations during the restructuring, according to PR Newswire. The Company expects to be able to continue paying employee salaries and benefits, meet the needs of its guests and retail customers and honor all gift cards, according to the online news source.

Friendly's officials indicated the decision to file for Chapter 11 was driven by the economic downturn, higher food costs such as cream, and higher rent rates.

"We have embarked on an aggressive campaign to enhance restaurant operations, improve the guest experience, strengthen our team and expand the Company's successful retail ice cream business," said Harsha V. Agadi, Chairman & CEO of Friendly's, in a prepared statement.

"I am particularly pleased with the enthusiastic response among our guests and employees to the recently launched 'High Five' campaign which not only provides great meal values but is also revitalizing our brand in the marketplace," she continued.