With the Coronavirus (COVID-19) piling on top of its financial struggles, Chuck E. Cheese parent company, CEC Entertainment, has now officially filed for bankruptcy.
Following initial reports, the kid’s restaurant and entertainment chain will use a Chapter 11 filing to restructure its debt-heavy balance sheet. Looking to talk with financial stakeholders and landlords to plan a recovery strategy to keep the business going.
According to CEC CEO David McKillips, the bankruptcy “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.”
The pandemic forced CEC to close roughly 550 company-run Chuck E. Cheese and Peter Piper Pizza locations causing a 22 percent plunge in sales during the first quarter. As CEC undergoes the bankruptcy process, 266 Chuck E. Cheese locations have now reopened and will continue to operate.