SIOUX FALLS, S.D. -- Another family restaurant announces upcoming closings--Pizza Hut while another files for bankruptcy--Perkins. Parent company Yum! says they will be closing around 500 dine-in Pizza Hut stores around the country. They say many will be replaced with delivery/carryout only stores.The company has not provided a list of locations that will close or be switched over to the new format.  Watertown's Pizza Hut had been converted to a carryout/delivery service earlier.  Meanwhile Perkins Restaurants has filed for bankruptcy. There is a Perkins restaurant in Watertown. It will not be impacted by the announcement since the Watertown restaurant is locally owned.  The company has closed 29 restaurants that it says are not performing well.

Below is the news release from Perkins on the sale of their assets and their bankruptcy filing. 

MEMPHIS,  TENNESSEE   (August  5,   2019 )  –  Perkins   &   Marie  Callender’s (together   with   certain   affiliates  and   subsidiaries,  collectively, the   “Company”) , today   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  bakery   business. 

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   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 ha(s an agreement with its existing lenders to provide debtor-in-possession (“DIP”)  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   August   4, 2019, 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.

Jeff Warne, President & CEO of Perkins & Marie Callender’s LLC stated, “Our   intention moving forward is to minimize disruptions and ensure that the  sale  process is a seamless t0 our guests, employees, and vendors as   possible. ” 

Additional information including court filings and information about the   claims process can be found at a separate website maintained   by   the   Company’s claims agent, KCC   LLC,  at  http:/ / PMC.  Perkins & Marie Callender’s,  LLC   has  also  established a Restructuring   Information line for interested parties at 888 -251-3076