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Perkins And Marie Callender’s File For Chapter 11

Perkins And Marie Callender’s File For Chapter 11


MEMPHIS, TN
Monday, August 5th, 2019

Many companies have been left scrambling to stay afloat in today’s competitive restaurant sector, and the latest to hit a wall is Perkins & Marie Callender’s. The company has recently announced that it has executed an Asset Purchase Agreement with Perkins Group, LLC, for the sale of its Perkins business and a segment of its Foxtail Foods bakery business. Facilitating the sale, the company has voluntarily begun Chapter 11 proceedings under the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

Jeff Warne, President & CEO, Perkins & Marie Callender’s"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," said Jeff Warne, President & CEO.

According to Bloomberg, the company owes its lenders over $100 million dollars and has stated that it skipped interest payments on a credit facility in 2018.

As part of the restructuring process, the company closed 19 of its Marie Callender’s and 10 Perkins underperforming restaurants, though all of its other restaurants will remain open and operate as usual. The company is exploring all available options, as it is reportedly continuing discussions with potential buyers and investors for its Marie Callender’s restaurants, though no deal has been announced or finalized, according to a press release.

As part of the restructuring process, the company closed 19 of its Marie Callender’s and 10 Perkins underperforming restaurants

The recent motions filed by the company will, subject to Court approval, allow it to maintain its usual employee benefits and compensation programs, make payments for goods and services, and operate its business as usual. The company has an agreement in place with its existing lenders to provide debtor-in-possession (DIP) financing to ensure an efficient bankruptcy process, arranging for a $7.75 million bankruptcy loan, Bloomberg reports. The company expects that it will retain enough liquidity to continue to operate normally while the sale process is completed.

Does this spell the end of Perkins & Marie Callender’s? Deli Market News will report.

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