Perkins Chain Of Restaurants Files For Chapter 11

by San Antonio Attorney

Perkins and Marie Callender’s Inc chain of restaurants filed for bankruptcy with plans to shut down 65 locations, according to court documents.

The company is the most recent food business that has been greatly affected by the slow recovery and rising costs of foods. A week ago, Allen Family Foods, chicken producer, also filed for bankruptcy.

Perkins Family Restaurant & Bakery, known for its breakfast meals served all day, plans to find its way out of bankruptcy by offering control of the company to its unsecured-debt creditors.

The bankruptcy is going to eliminate the investment of Castle Harlan Inc which bought Perkins for $245 million in 2005.

The Marie Callender Restaurant & Bakery chain, famous for its home-style meals and pies, was also acquired for $140 million a year after.

According to Joseph Trungale, the president of Perkins, the business was very much affected by a poor economy in the areas that experienced the worst type of housing failure in the U.S., specifically California and Florida.

In addition, he faulted the competitors that were able to spend money on investing in new locations because they have previously filed for bankruptcy.

Recently, Charlie Brown’s Steakhouse, Fuddruckers, Sbarro’s, and Uno Chicago Grill pizza were able to bring back their businesses by wiping out debt through bankruptcy.

Perkins’ first location is in Ohio that started in 1958. Marie Callender started the chain that carries her name in California in the year 1948. Put together, the two companies have about 12,000 employees before it announced to close some of its locations that will reduce 2,500 jobs.

In the company’s petition under Chapter 11, it listed $290 million overall assets and $440.8 million liabilities. There were eleven affiliates included in the bankruptcy.

The amount of its unsecured debt is $190 million and it secured debt is $103 million. In order to continue its operations, it will borrow about $21 million.

If you own a restaurant, and think you are going to loose your business because of cash flow issues.  Consider a San Antonio Bankruptcy to aid you in a Chapter 11 bankruptcy plan.

Leave a Comment

Previous post:

Next post: