Local Perkins restaurants to stay open under company name
WARREN — Six Perkins franchise restaurants in Ohio will stay open under the family-dining company’s brand while their operator continues to plod through bankruptcy.
Allegheny County, Pa.-based 5171 Campbells Land Co. will continue to operate restaurants in Warren, Niles, Youngstown and Austintown under an agreement with Perkins & Marie Callender’s LLC, which sued the company to stop it from using the Perkins name and trademark.
The agreement in Pittsburgh bankruptcy court calls for Campbells Land Co. to decommission its restaurant in Canfield and nine others in Ohio and Pennsylvania, however, gives it the option of operating a non-Perkins at the locations if it removes all Perkins signs and material within 10 days of Friday’s approval.
Ten other Perkins in Pennsylvania and one New York were also spared in the agreement and remain franchises of Campbells Land Co.
The restaurants can stay open bearing the Perkins name under temporary license agreements until the sides agree on new license agreements or Aug. 10, whichever comes first. The temporary licenses expire Aug. 10.
Perkins & Marie Callender’s sued Campbells Land Co. in late June in U.S. court in Tennessee over claims the company defaulted on its license agreements and owed more than $2.1 million in franchise-related fees.
A judge issued an order temporarily barring Campbells Land Co. from using the Perkins trademark and hours before a July 8 hearing on making the order permanent, Campbells Land Co. filed for Chapter 11 bankruptcy protection in Pittsburgh.
The bankruptcy court filing also calls for the case in Tennessee to be dismissed.
A hearing is set for July 31 in Pittsburgh to consider objections to the bankruptcy court agreement.
In the filing for Chapter 11, which allows a debtor to restructure its debt as opposed to liquidating to pay creditors, Campbells Land Co. states its assets are $1 million to $10 million and its liabilities are $10 million to $50 million.
The court Monday gave the company 14 more days to fix deficiencies in the bankruptcy petition.
Perkins has 117 company-owned restaurants and 254 franchised restaurants, according to the company’s website.