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The Perkins Bankruptcy: Your Obamanomics Success of the Day


 

The Perkins & Marie Callender company, based out of Memphis, Tennessee, filed for bankruptcy on Monday, announcing immediate plans to close 65 locations and cut 2,500 jobs, according to a report in the Chicago Tribune.  It joins other once-popular restaurant chains like Uno Chicago Grill, Fuddruckers, and Sbarro’s as collateral damage from the Obama years.

According to the Tribune report, “the bankruptcy will wipe out the investment of private equity firm Castle Harlan, Inc.,” which plunked down a cool $245 million for the chain in 2005.  Perkins & Marie Callender will now be owned by “holders of the company’s unsecured debt.”

Perkins was killed by a classic case of Obamanomics.  President Joseph Trungale cited “a weak economy in states that suffered the worst of the U.S. housing crash, particularly Florida and California.”  There are quite a few Perkins restaurants in my area of Florida.  A local radio news program said rising food prices also contributed to their decline.

Maybe what Perkins really needed was an ObamaCare waiver.  McDonald’s got one, and they were responsible for half of the new jobs created in May.