Perkins & Marie Callender’s Holding LLC, operator of two family and casual dining chains, filed for bankruptcy protection on Monday and plans to sell most of its assets, after suffering from lower customer traffic and rising food and labor costs.
The Chapter 11 filing is the second in eight years for the Memphis-based company, which has nearly 400 stores under the Perkins and Marie Callender’s brands in the United States, Canada and Mexico.
Its 2011 reorganization left it under the control of the investment firm Wayzata Investment Partners, still its majority owner. Thirty-two underperforming restaurants are being closed, but the company plans to operate normally while it restructures.
Many dining chains have struggled to fill seats because of heavy competition and a desire among many customers for newer, fresher food options.
Kona Grill (KONAQ.PK), which specializes in American cuisine and sushi, filed for bankruptcy in April, while the parents of Bertucci’s pizza chain and the El Torito and Chevys Fresh Mex chains sought protection last year.