A Memphis based restaurant chain has felt the pressure from the tightening of financial belts. The home-style dining chain, Perkins, began losing money when the recession hit. The Perkins company found itself in the midst of a financial crisis when several states that are home to many of their franchise locations became the hardest hit by foreclosures. Perkins restaurants in Florida, California and Nevada have struggled to remain open and staffed. The company decided to file for Chapter 11 bankruptcy earlier this year to obtain a reorganization plan that would help alleviate its financial burden.
The United States Bankruptcy Court for the District of Delaware approved the bankruptcy plan earlier this week. Perkins, who also owns the Marie Callender’s company, together has begun efforts to resolve their debts with vendors. A series of steps to resolve relations with their creditors has begun including repaying secured creditors through new secured loans and cash, along with providing unsecured creditors membership interests and a stake in future proceeds . The bankruptcy plan will permanently close 58 stores around the country and be managed by a private equity investment firm upon the completion of the debt restructuring process.