Perkins & Marie Callender's Inc. files Chapter 11 bankruptcy
Perkins & Marie Callender's Inc. has filed a voluntary petition for reorganization under chapter 11 of the U.S. Bankruptcy Code in order to implement financial restructuring. Concurrently with its chapter 11 filing, the company has entered into an agreement with Wells Fargo Capital Finance to provide the company with a $21 million debtor-in-possession financing facility. The company will use its cash-on-hand and the debtor-in-possession financing to maintain business-as-usual during the restructuring process. Perkins believes its current and anticipated cash resources will be suitable to pay its expenses and maintain its business operations during the restructuring. Vendors and suppliers should see no change in normal business operations, the company said in a release.
"The agreement reached with our noteholders will allow the company to restructure its balance sheet on an expedited basis, strengthen its restaurant operations, and ensure the long-term viability of the company. Our restaurant operations will not be impacted by the restructuring and our customers will continue to receive the highest quality products and dining experience they have come to expect from our restaurants," said Jay Trungale, CEO of Perkins. "We greatly appreciate and recognize the support of our employees, customers, vendors and strategic partners whose support is vital to our success."