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While business is booming in the land of bleach of sanitizing wipes, many pockets of the economy continue to languish during the pandemic.
Yesterday we got a string of bad news:
Friendly's: The iconic restaurant chain has filed for Chapter 11 bankruptcy. The 85-year-old company known for its milkshakes and comfort food will be sold to an investment firm called Amici Partners for $2 million (and the assumption of debt).
- On a positive note, all 130 locations are expected to stay open during the bankruptcy process.
Malls: Two major mall operators filed for bankruptcy yesterday. CBL Properties, a large Tennessee-based developer, and Pennsylvania REIT have each filed for Chapter 11 protection.
- Each operator primarily focuses on so-called Class-B and Class-C malls, which commend lower per-square-foot rents and are often occupied by financially weaker tenants.
AMC: Continued its steady plunge yesterday. Shares fell nearly 9% after the movie chain announced it is looking to raise $50 million by selling common equity at highly depressed prices.
- Spooky: Even pre-pandemic, AMC was being crushed by $4.75 billion of debt accumulated by outfitting its theaters with plush seating and from buying competitors like Carmike and Odeon.