Perkins & Marie Callender's, Inc.-which operates restaurants of the same names-said Tuesday that it received bankruptcy court approval for a restructuring plan that will give majority control of the company to Wayzata Investment Partners, a local private equity firm.
The Memphis-based restaurant operator filed for Chapter 11 bankruptcy protection in June, listing assets of $290 million and debt of $441 million.
"The company will soon emerge from its financial and operational restructuring a leaner and stronger company, possessing a dramatically improved balance sheet," Perkins' CEO Jay Trungale said in a statement. "We are very proud of what we have been able to accomplish during the company's relatively brief time in bankruptcy."
Trungale added that the company plans to emerge from bankruptcy later this month.
Perkins & Marie Callender's filed for bankruptcy after seeing a slump in discretionary spending among customers due to the weak economy.
The company negotiated a restructuring proposal with noteholders prior to seeking bankruptcy protection.
To see how the restructuring plan will impact secured and unsecured noteholders, as outlined by Bloomberg, click here.
Wayzata Investment Partners focuses on opportunities in undervalued debt, equity, and assets.
According to the Perkins & Marie Callender's Web site, Perkins has nearly 500 company and franchised restaurants located primarily in the Midwest, Pennsylvania, and Florida. Marie Callender's has 92 company and 42 franchised restaurants, mostly in California and the southwest.
The company said in its bankruptcy filing that it planned to close about 65 U.S. restaurant locations, which would eliminate about 20 percent of its work force, but it continues to have a strong presence in Minnesota.