Marie Callender’s and Perkins Parent Company Files Chapter 11 Bankruptcy; Will Close 19 Locations

Fans of the classic American diner and pie shop may soon have one fewer place to visit as Perkins & Marie Callender’s Holding LLC has recently filed for Chapter 11 bankruptcy.  The parent company of both Perkins and Marie Callenders diners (obviously) says they have a plan to sell most of their assets in the process.  

In a recent press release, the company has revealed, so far, the closure of at least 10 Perkins locations and 19 Marie Callender’s locations.  According to the company, though, these locations have been grossly underperforming. Furthermore, the company wants to remind that the rest of the chain’s restaurants will remain open—at least, for now—and will continue to operate as usual.  

Perkins & Marie Callender’s Holdings LLC President and CEO Jeff Warne comments, “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.”

Accordingly, in his court filing, Warne said that falling sales “across the family-dining and casual-dining industries” the last two years, combined with higher commodity prices and rising minimum wages across the country have contributed to an increasingly tighter labor market that have forced them to make this drastic decision.  

Apparently, the company owes more than $100 million to its lenders. Furthermore, this now marks the company’s second bankruptcy, coming out of the initial round of court protection in 2011.  

So far, these are the California locations that have been affected:  Arcadia, Bakersfield, Buena Park, Citrus Heights, Chula Vista, Corona, Fresno, Escondido, Vista, Victorville, Ontario, Placentia, Northridge, Whittier, and Westminster.  Also, the closures have affected two Utah locations (in Salt Lake City and Layton).  Last month, the company had to close its flagship location in Los Angeles’ Miracle Mile shopping district.