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:/ / www.kccllc.net/ PMC. Perkins & Marie Callender’s, LLC has also established a Restructuring Information line for interested parties at 888 -251-3076