Perkins & Marie Callender’s, LLC has filed Chapter 11 bankruptcy and, as part of its restructuring process, has closed 10 Perkins and 19 Marie Callender’s locations which a press release from the company described as “underperforming.” Bankruptcy was declared to facilitate the sale of the Perkins’ business and a segment of the Foxtail bakery business to Perkins Group LLC, a company with unidentified owners. Perkins & Marie Callender’s LLC hopes that a series of court motions, if approved, will allow it to continue operating businesses as usual while completing the sale process.

A manager from the Fergus Falls Perkins assures that the Fergus Falls location, a corporate location and not a franchise, will remain open. A franchise location in St. Cloud, which operated for more than 40 years, closed on Monday, Aug. 5. In July, Minneapolis’ last remaining Perkins was closed in the Seward neighborhood and the Perkins in Chanhassen closed on Sunday, Aug. 4 as a result of the bankruptcy. As for other locations (there are about 60 Perkins left in Minnesota), the company states, “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.”

The sale process is only for Perkins; discussions with investors and potential buyers regarding the Marie Callender’s restaurants are still underway. Marie Callender’s only has locations in California and Nevada; the final two locations in Utah closed on Sunday.

Wayzata Investment Partners became the majority shareholder of Perkins & Marie Callender’s LLC in 2011 when they first filed for bankruptcy. The company is still its majority owner, but has not commented on the bankruptcy filing.

Jeffrey Warne, CEO of Perkins & Marie Callender’s said in a court filing that falling sales in the family-dining and casual-dining industries and rising commodity and labor costs were all factors leading to the decision to file for bankruptcy.

In addition to the Perkins in Fergus Falls, there are locations nearby in Fargo, Detroit Lakes and Alexandria.

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