Friendly Ice Cream Corp. said last week it will consider putting itself up for sale, and that it swung to a profit in the fourth quarter.
The company issued a statement saying it has hired Goldman Sachs & Co. as a financial adviser, and Weil, Gotshal & Manges LLP as a legal adviser, to assist “in exploring strategic alternatives to enhance shareholder value, including a possible sale of the company.”
Company spokeswoman Deborah Burns said a timeframe hasn’t been set for the review.
“The board is committed to do a thoughtful, thorough examination of all the options,” she said.
The company reported a fourth quarter profit of $136,000, or 2 cents per share, compared with a loss of $30.2 million, or $3.82 per share during the same period a year earlier. Friendly’s posted an annual profit of $5 million, or 61 cents per share, compared with a loss of $27.3 million, or $3.49 per share last year. Revenue rose to $531.5 million from $531.4 million.
Friendly’s was started in Springfield in 1935 by brothers Prestley and Curtis Blake. Prestley Blake sold the company in 1979, but has continued to be a major shareholder and vociferous critic of the company’s current management.
Friendly’s now runs a chain of 514 company-owned and franchise restaurants in the Northeast and distributes ice cream through more than 4,500 supermarkets and other retail locations. (AP) n
