Perkins & Marie Callender's files for bankruptcy
June 13, 2011
by Eric Schroeder
MEMPHIS, TENN. — Perkins & Marie Callender’s Inc. has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court in Delaware. The company, which owns or franchises about 600 restaurants and sells pies, muffins, batter and other bakery products to supermarkets, said it plans to close approximately 65 restaurants and eliminate 2,500 jobs.
The company listed assets of $290 million and debt of $441 million in its filing.
In the third quarter ended Oct. 3, 2010, Perkins sustained a loss of $12,349,000, which compared with a loss of $11,248,000 in the same period a year ago. Net revenues also were lower, falling to $108,700,000 from $115,470,000.
At the time earnings were released, Joseph Trungale, chief executive officer, attributed the sluggish results to “the languishing economy, including declines in consumer confidence and sluggish consumer spending and increased commodity costs.”
Founded in 1958 as a pancake house in Ohio, Perkins was acquired in 2005 for $245 million by buyout firm Castle Harlan Inc.