Trending: Perkins files for bankruptcy protection in Delaware


A combination of two long-time restaurant chains has filed for bankruptcy for a second time.

Reuters reports that Perkins and Marie Callendersfiled for Chapter 11 in U.S. Bankruptcy Court in Wilmington.

Cited as reasons for the filing of the 400-unit chain were rising minimum wages, higher competition and rising wholesale prices for food and related items.

The Delaware bankruptcy court has been a popular location for mid-sized restaurant chains that have fallen out of fashion fail to undergo makeovers for new generations of diners, and/or end up with heavy debt burdens when acquired by private equity interests.

Perkins has a popular location on Capitol Trail near Newark.

Perkins has seen growing competition from diner chains, including Metro Diner and iHop. Another chain that has struggled is Friendly’s, which sold off its ice cream business while focusing on restaurants.

Also hitting chains like Perkins is the trend toward weekend brunch that often includes alcoholic beverages such as Bloody Marys and mimosas.

Perkins has a large number of locations in Pennsylvania, including a restaurant in nearby Avondale.

While Marie Callenders restaurants remained in the Western states, the name is well known by way of its pies and frozen food offerings that are sold in supermarkets. The product line is under separate ownership.

Facebook Comments