Restaurant chain Chuck E. Cheese parent CEC Entertainment filed for Chapter 11 bankruptcy on Thursday, making it the newest casualty of the COVID-19 pandemic that has crushed leisure and leisure industries globally.
The company described the present disaster because the “most difficult” in its historical past and mentioned it could use the bankruptcy proceedings to proceed talks with stakeholders and landlords, in addition to restructure its steadiness sheet.
CEC listed each belongings and liabilities within the vary of $1 billion to $10 billion, based on the bankruptcy submitting within the U.S. Bankruptcy Court for the Southern District of Texas.
U.S. and worldwide franchise companions in addition to company entities outdoors the United States will not be a part of the method, it mentioned.
Chuck E. Cheese and Peter Piper Pizza places will proceed to re-open as per authorities tips, CEC added.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza restaurant and arcade venues have been re-opened, with the company anticipating to keep up ongoing operations within the places all through the Chapter 11 course of.
Irving, Texas-based CEC was taken non-public by Apollo Global Management in 2014 in a $1.three billion deal, together with debt.
It has since sought to broaden its enchantment past youngsters and youngsters, increasing its alcohol choices for adults.
Last yr, the company terminated its earlier resolution to merge with Leo Holdings, a clean examine company.
As of March, CEC and its franchisees operated 612 Chuck E. Cheese and 122 Peter Piper Pizza venues, with places in 47 U.S. states and 16 international nations.
PJT Partners is serving as a monetary adviser, whereas FTI Consulting is its restructuring adviser, it mentioned.