Perkins & Marie Callender’s to sell company
Marshall restaurant site unaffected
Perkins & Marie Callender’s announced Monday 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 bakery business, according to a news release from the company.
In order to facilitate the sale, the company has voluntarily commenced Chapter 11 proceedings under the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The sale and bankruptcy proceedings do not affect the Perkins Family Restaurant & Bakery, which is located on the corner of U.S. Highway 59 and Minnesota Highway 23 in Marshall, said Alainna Gelster, Perkins manager.
“We’re a franchise, not corporate-owned,” said Gelster. The Marshall restaurant is owned by Kevin Wharton, doing business as KRMM Hospitality. In addition to the Marshall store, KRMM Hospitality owns Perkins Restaurants in Milford, Iowa; Mankato, North Mankato and Willmar.
The company has filed a series of motions that, subject to court approval, will allow it to maintain its usual employee compensation and benefit programs, make payments for goods and services in the normal course, and otherwise operate its business as usual. These motions are typical in a Chapter 11 process and are generally granted in the first days of the case.
The company has an agreement with its existing lenders to provide debtor-in-possession financing to ensure an efficient bankruptcy process. The company expects to have enough liquidity to continue to operate in the normal course while completing the sale process.
The company is continuing discussions with investors and potential buyers regarding the Marie Callender’s restaurants. Once an agreement is finalized an additional announcement will be made.
As part of the restructuring process, on Aug. 4, the company closed 10 Perkins and 19 Marie Callender’s underperforming locations. All remaining restaurants will be open and operating as usual and guests can expect to continue to enjoy the great food and hospitality for which Perkins and Marie Callender’s are known.
“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 and CEO of Perkins & Marie Callender’s.
Founded in 1958, the Perkins system comprised nearly 400 restaurants in 32 states and Canada.