For the second time in eight years, Perkins & Marie Callender’s Holding LLC, the company which operates Perkins restaurants, filed for bankruptcy. The last time the company filed was back in 2011. Back then the company filed as a holding of the investment group led by Wayzata Investment Partners, which still controls close to 73 percent of the company. Following this bankruptcy filing, there have been Perkins restaurant closures across Wisconsin and other states. Currently, two Perkins locations in Madison remain open as well as those located in Wisconsin Dells and Onalaska.
Perkins Restaurant Closures Amidst Company Filing for Bankruptcy
A Memphis, Tennessee based company, Perkins & Marie Callender’s LLC, filed for Chapter 11 bankruptcy. The filings reveal that the company owes around $100 million to lenders and liabilities totaling $100 million to $500 million. The company’s assets are only valued at $50 to $100 million. The bankruptcy filing indicated that poor financial performance was the result in a decline in sales within both the family dining and casual dining industries. The company has secured $7.75 million in bankruptcy loans, according to court records. The loans are what is referred to as debtor-in-possession financing and are secured in order to continue operating.
The company is in the midst of restructuring and has closed over 19 Marie Callender’s and 10 Perkins. Over 1,000 employees have been affected by this. The company hopes to minimize any further disruptions and loss of employment by making a smooth process of selling off parts of the company and helping ease the transition. Perkins, founded back in 1958, has 342 restaurants in the U.S. and Canada.
Perkins & Marie Callender’s LLC filed for bankruptcy in the U.S. Bankruptcy Court located in Wilmington, DE. While any final sale or other finances would need to be approved by the bankruptcy judge, the company is planning to sell the Perkins portion of the business as well as part of its Foxtail bakery business to Perkins Group LLC. This, referred to as a “stalking horse” bid, lays the foundation for the court-supervised auction of the company’s assets that is likely to take place in September. There are also negotiations underway to sell off parts of Marie Callender, the smaller of the two restaurant brands within the company. There are currently 51 Marie Callender stores operating in the U.S.
Experienced Bankruptcy Attorneys
Bankruptcy involves complex negotiations and company restructuring. There is a lot at stake during all of this. People’s jobs, their livelihoods, and their financial futures hang in the balance along with the future of the company. At Hanson & Payne, our experienced bankruptcy attorneys know how to handle these delicate and complicated matters to protect the best interests of our clients. We are here to discuss your options and to represent you throughout the bankruptcy proceedings. Contact us today.