(Reuters) ? 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 restaurants.
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 2006.