The parent company of Chuck E. Cheese has filed for Chapter 11 bankruptcy protection, citing the “financial strain” caused by the coronavirus.
The good news is, Chuck E. Cheese will still operate a number of their restaurants while they reorganize.
“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,” CEC’s chief executive, David McKillips, said in a statement.
There is no word on whether or not they’ll be closing locations permanently but CEC will be restructuring their business model. The move includes shedding itself of debt, renegotiating deals with landlords and more. After closing the majority of their stores due to COVID, they managed to re-open 266 of their Chuck E. Cheese and Peter Piper Pizza restaurants.
The company intends to reopen the remaining restaurants and those that are open can have dine-in and delivery options as well as host birthday parties and more.
Chuck E. Cheese is the latest company to file for bankruptcy due to COVID. According to CBS News, 722 companies sought bankruptcy protection last month.
Chuck E. Cheese Files For Bankruptcy Due To COVID-19 was originally published on radionowhouston.com