Perkins & Marie Callender’s Holding LLC, which operates U.S. family dining restaurants, filed for Chapter 11 bankruptcy protection on Monday with the U.S. bankruptcy court in Delaware.
The Memphis, Tennessee-based company said Monday it plans to sell its Perkins’ business and a segment of its Foxtail bakery business, which supplies to its restaurants and distributors to “Perkins Group LLC.” This is an arrangement known as a “stalking horse” bid and sets a floor for bidding on the company’s assets with a court-supervised auction expected in September.
The filings indicate that the company owes lenders about $100 million, with total liabilities of $100 million to $500 million. The value of its current assets are valued in the papers as $50 million to $100 million.
The bankruptcy filing is the company’s second in eight years. It emerged from court protection in 2011. The family restaurant market has polarized in recent years. Big heritage brands such as IHOP and Denny’s have split the segment’s growth with emerging regional brands such as Black Bear Diner and breakfast-and-lunch-only concepts such as Snooze, an A.M. Eatery, and First Watch. But intense competition, particularly from quick-service brands offering all-day and extensive breakfast menus, has hurt a number of other onetime dominant players. Click here, here and here for the full story.