Perkins & Marie Callender’s Files Bankruptcy: Restaurant Chain Closes 29 Locations Amid Restructuring

Perkins & Marie Callender’s filed for Chapter 11 bankruptcy protection on Monday a day after it closed 29 of its restaurants. The company also announced that it is selling off its Perkins’ business and a portion of its Foxtail bakery operations.

Under its Chapter 11 restructuring, Perkins & Marie Callender’s has asked the court to allow it to continue its employee compensation and benefits while making payments for good and services as it continues to operate.

A total of 10 Perkins and 19 Marie Callender’s restaurant locations were closed on Sunday. All remaining restaurants will remain open and operating, as usual, Perkins & Marie Callender’s said. As many as 1,190 employees were affected by the restaurant closures, USA Today reported.

The company’s Marie Callender’s restaurants may also be sold off as Perkins & Marie Callender’s said it is discussions with its investors and potential buyers at this time. It will provide more information once an agreement has been finalized.

“Our intention moving forward is to minimize disruptions and ensure that the sale process is as seamless to our guests, employees, and vendors as possible,” Jeff Warne, president and CEO of Perkins & Marie Callender’s, LLC said in a statement.

The restaurant chain has also entered into an agreement with its existing lenders to provide $7.75 million in debtor-in-possession financing, according to its filing. The company said it expects to have “enough liquidity” to move forward with its restaurant operations as it completes the sale of Perkins and Foxtail.

The company, which was founded in 1958, has 101 company-owned Perkins restaurants and 241 franchise locations in 32 states and Canada. It also has seven company-owned Marie Callender’s locations and 32 franchise restaurants under the same name.

Perkins & Marie Callender’s also filed for Chapter 11 bankruptcy in 2011.