Perkins & Marie Callender’s Inc. has filed for Chapter 11 bankruptcy protection. If you own a Perkins Gift Card or a Marie Callender's Gift Card be sure to go out there and redeem it as soon as possible; they are still being accepted by the causal diner.
58 Locations Closing, More Likely to Follow
Perkins and Marie Callender’s Inc. listed assets of $290 million and debt of $441 million in their Chapter 11 filing. According to the company's press release, 58 restaurants will be closing in order to put the company on better financial footing.
While they did not speducalte on whether more locations would close, it's common for there to be more than one round of restaurant closures for a business looking to restructure it's debt and emerge from Chapter 11.
Down, Not Out
As usual, a Chapter 11 filing indicates the company plans to stay in business and continue it's operations. Under such arrangements, gift cards are typically accepted; however the value stored on each gift card is at a much greater risk of becoming worthless when a company files for bankruptcy protection. Take this as a red flag to go our there an redeem your gift card. It's entirely possible the gift cards issued may be worthless in the near future.
ScripSmart Bankruptcy Alerts
ScripSmart monitors the gift card landscape. When we hear of a company who is headed into financial trouble, we send out Bankruptcy Alerts to all those who have registered ownership of that gift card with ScripSmart. Sign up to take advantage of the free service here.