The Associated Press

BATON ROUGE - No layoffs or cafeteria closures are planned if a deal goes through to sell Piccadilly Cafeterias Inc.'s name, restaurants and assets for about $54 million, the head of the acquiring firm says.

After years of declining sales, Piccadilly sought bankruptcy protection late Wednesday. The company said it expects to close a deal with a joint venture formed by Lake Success, N.Y.-based TruFoods Corp. and Miami-based H.I.G. Capital by the end of January.

TruFoods President Jeffrey Bernstein said that the company intends to keep Piccadilly's headquarters in Baton Rouge and that he does not expect any layoffs.

Bernstein said he's not afraid of some industry observers who believe the time for the cafeteria has passed. "We like the concept despite what many in the industry have to say about it. There is still a strong, healthy core business here, and there are good people."

Bernstein said the company will look at all its options, including making Piccadilly all-you-can-eat and introducing lighter fare such as salads and wrap sandwiches. "We will evaluate all aspects of the business."

TruFoods operates and franchises Arthur Treacher's Fish & Chips, Pudgie's Famous Chicken, Wall Street Deli and BurritoVille.

Piccadilly has closed about 25 money-losing cafeterias this year. Bernstein said he does not expect any more restaurant closures after TruFoods takes over Piccadilly's 145 locations in the Southeast and Mid-Atlantic states.

Peccadilloes' company pension plan, which currently has a $42 million shortfall, will be taken over by the Pension Benefits Guaranty Corp., which handles the pension plans of bankrupt companies.

Piccadilly suffered sales declines beginning in the late 1990s and has not been able to turn them around. The company also got into trouble after acquiring Morrison Restaurants Inc. in 1998, a deal that doubled the size of the company to 273 restaurants but saddled it with underperforming locations.