- Real Estate
- Food & Drink
Aug. 7, 2019
A bankruptcy filing earlier this week by the corporate owner of Perkins Restaurant & Bakery should not have any effect on the three restaurants in Sioux Falls, which are owned by franchisees.
“Perkins has been around a long time, and I think it will continue to be,” said Jim Rahfaldt, who owns the east-side restaurant near Arrowhead and Veterans parkways.
His company, CyHawk Hospitality Inc., is opening its 18th Perkins Restaurant later this month in Lincoln, Neb.
On Monday, Tennessee-based Perkins and Marie Callender’s LLC filed for Chapter 11 bankruptcy in the District of Delaware and is seeking the court’s approval to sell its Perkins business and a segment of its Foxtail bakery business to Perkins Group LLC. As part of the restructuring process, the company closed 10 Perkins and 19 Marie Callender’s locations that it owned, according to a news release. Of the 342 remaining Perkins restaurants, the company owns 101 and franchisees own 241.
The company is talking with investors and potential buyers who are interested in the Marie Callender’s restaurants, according to the news release. There are 28 of those restaurants of which seven are corporate-owned.
In Sioux Falls, the other two Perkins locations, both of which are on West 41st Street, are each owned by different franchisees.
Rahfaldt said he’s pleased with sales at the east-side Perkins, which opened eight months ago.
“That’s doing well for us. It’s done extremely well. We are lucky.”
“Perkins has been around a long time, and I think it will continue to be.” That’s the reaction to the corporate bankruptcy filing by one of the local franchisees.