CEC Entertainment, the parent company that owns Chuck E. Cheese, has filed for Chapter 11 bankruptcy after a massive decline in business last quarter.
According to CNBC, the long-running children's themed restaurant was forced to close more than 600 locations during the COVID-19 crisis, leading to a fall in business by almost 22 percent.
The company plans to keep reopening restaurants where it can — as coronavirus restrictions continue to lift in accordance with CDC and federal guidelines in the U.S. — but will use the bankruptcy filing to restructure its financial strategy over the coming period of economic uncertainty.
On June 24, the CEC announced plans to reopen 266 Chuck E. Cheese locations in the U.S. and Peter Piper Pizzas in the restructuring strategy.
"The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in our company's history and get back to the business of delivering memories, entertainment, and pizzas for another 40 years and beyond," David McKillips, CEO of CEC, said in a press release.
He continued: "I'm confident in the strength of our team and our world-class brands and look forward to more fully implementing our strategic plan as we put these financial challenges behind us."
According to CNBC, the long-running children's themed restaurant was forced to close more than 600 locations during the COVID-19 crisis, leading to a fall in business by almost 22 percent.
The company plans to keep reopening restaurants where it can — as coronavirus restrictions continue to lift in accordance with CDC and federal guidelines in the U.S. — but will use the bankruptcy filing to restructure its financial strategy over the coming period of economic uncertainty.
On June 24, the CEC announced plans to reopen 266 Chuck E. Cheese locations in the U.S. and Peter Piper Pizzas in the restructuring strategy.
"The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in our company's history and get back to the business of delivering memories, entertainment, and pizzas for another 40 years and beyond," David McKillips, CEO of CEC, said in a press release.
He continued: "I'm confident in the strength of our team and our world-class brands and look forward to more fully implementing our strategic plan as we put these financial challenges behind us."
