Local Perkins restaurants can keep the brand longer
Temporary agreement extended until Aug. 31
WARREN — Temporary agreements that allowed six Perkins franchise restaurants in Ohio to stay open under the family-dining company’s brand have been extended as their operator continues to navigate bankruptcy.
The short-term licenses held by 5171 Campbells Land Co. that let the company-run restaurants in Warren, Niles, Young-stown and Austintown –plus others in Ohio and elsewhere — were due to expire Saturday under an agreement with Perkins & Marie Callender’s LLC.
But a filing approved in Pittsburgh bankruptcy court lengthens the expiration date to Aug. 31 or until the sides agree on new license agreements, whichever comes first.
It was among a handful of stipulations to a July agreement that called for Allegheny County, Pa.-based Campbells Land Co. to decommission its restaurant in Canfield and several others in Ohio and Pennsylvania.
Another stipulation was the company had to remove all Perkins signs and material at the decommissioned restaurants by Aug. 5. Campbells Land Co. was given the option to continue operating the restaurants, but just not as Perkins.
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 lawsuit in Tennessee has been dismissed.
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.
A hearing is set for Aug. 29 on a motion from the U.S. Trustee office on appointing a trustee in the case.