Judge orders Warren Perkins to close shop

Manager contends a restaurant will remain in business at location

At a Friday morning hearing in Pittsburgh, a federal bankruptcy judge ordered 10 Perkins restaurants to close – Warren included.

But a Perkins official has told the Times Observer that a restaurant will continue to operate at the Perkins location on Ludlow St.

Chief Bankruptcy Judge Carlota Bohm approved a negotiated stipulation and consent order between 5171 Campbell Land Co., Inc. – which owned the license agreement to operate a total of 27 Perkins restaurants, including the Ludlow St. restaurant – and Perkins.

The agreement states that Campbell “shall immediately upon entry of this Consent Order, commence compliance with” a temporary restraining order instituted earlier this month that includes “closing the de-commissioned restaurants and removing all exterior signage and identification at the de-commissioned restaurants.”

A regional manager for Perkins, Paul Becker, told the Times Observer on Friday that “that restaurant is still to remain open” independently.

“We’re trying to keep people employed,” he said. “We are not going to be a Perkins… We’re still operating. It will be a restaurant.”

The order states that if Campbell complies within 10 business days that a non-Perkins restaurant would be permitted to operate at the former Perkins location.

5171 Campbell Land Co., Inc. of Meadville – filed for bankruptcy protection earlier this month.

A stipulation and consent order was filed on July 12 into federal court for the Western District of Pennsylvania and a revised stipulation was filed on July 17.

Those documents indicate that the Warren Perkins would be one of 10 of Campbell’s 27 restaurants that will be “closing… And removing all exterior signage and identification at the de-commissioned restaurants.”

That filing came on the heels of a temporary restraining order from a federal judge in Tennessee that prohibited 5171 Campbells Land Co., Inc. from continuing to operate its restaurant as Perkins.

The court ruled on July 2 that the company had “breached” its license agreements with Perkins & Marie Callender’s LLC (PMC) and was “restrained from continuing to directly or indirectly identify the Restaurants as current or former Perkins restaurants” and was further limited from “continuing to use any trademark owned by PMC.”

The order detailed a host of other items that could no longer be utilized by the restaurants such as, for example, the oversized American flag, the bakery case, signs, menus, fixtures, furniture, equipment, advertising, and stationery, among other items.

Perkins asserts that the debtor owes them a total of $2,164,509.29 in royalties and other fees.


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