Perkins & Marie Callender’s Inc. has put itself up for sale and could file for bankruptcy protection as a condition of any deal, a company spokeswoman said Friday.
“Perkins & Marie Callender’s is in the process of being sold,” company spokeswoman Vivian Brooks told Nation’s Restaurant News in a statement. “While there is a possibility that a buyer may avail themselves to a legal/financial provision in the bankruptcy code that would allow them to acquire the company free of certain liabilities and obligation, it is important that a possible bankruptcy filing be viewed in this context rather than a financial necessity due to performance issues.”
Private investment funds managed by Wayzata Investment Partners LLC are the majority owners of Memphis, Tenn.-based Perkins, which operates two family-dining brands: Marie Callender’s and Perkins Restaurant & Bakery.
Brooks emphasized that any possible bankruptcy filing is not a reflection of the financial performance of both brands. She said Perkins’ year-to-date same store sales are up 5.1%, while guest traffic is up 3.9%. Year-to-date same-store sales at Marie Callender’s, the company’s smaller brand, are up 6.9% with guest traffic up 5.4%, she said.
The company also owns Foxtail Foods, a manufacturing arm with three plants that produce baked goods for foodservice and retail distribution.
“Foxtail is having an equally strong year — suffice it to say that we are proud of our brands, our employees, our longevity and the industry leading momentum we are experiencing,” Brooks said.
The company declined to comment any further or specify if its same-store sales reflected systemwide locations, or company outlets.
Perkins Restaurant & Bakery, the company’s largest brand, had sales of $592.6 million in its Latest Year, down from $626.9 million in the Preceding Year, according to NRN’s 2019 Top 200 research. Perkins had 356 total units in its Latest Year. Of those, 239 were franchise locations.
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