(Corrects to remove reference to frozen foods business in
paragraph 1. The Marie Callender's frozen foods business is not
owned by the company)
* Says poor economic climate in primary markets led to
* Says high unemployment rate led to reduced customer
June 13 Perkins & Marie Callender's Inc, owner
of the Perkins and Marie Callender's restaurant chains, filed
for bankruptcy in a Delaware court on Monday, citing a slump in
sales due to weak economic environment in its primary markets.
Perkins & Marie Callender's, which is owned by New
York-based investment firm Castle Harlan Inc, said in its filing
it witnessed a sharp decline in restaurant sales in the Midwest,
Florida and Pennsylvania, where it primarily runs its
High unemployment and foreclosure rates in Florida and
California led to a decrease in discretionary income for many
historically loyal customers, resulting in a decline in customer
traffic, the Memphis, Tennessee-based company said.
The company listed total assets at $290 million and
liabilities at $440.8 million in its Chapter 11 petition. Eleven
of its affiliates were included in the bankruptcy filing.
Perkins, which was formerly known as The Restaurant Company,
operates or franchises around 600 restaurants in the United
States, Canada and Mexico, court papers show.
The company was formed after the Perkins Restaurant & Bakery
chain was merged with Marie Callender's Restaurant and Bakery in
The case is in re: Perkins & Marie Callender's Inc, U.S.
Bankruptcy Court, District of Delaware, No. 11-11795.
(Reporting by Tanya Agrawal in Bangalore; Editing by Prem