Restaurant chain Chuck E. Cheese mum or dad CEC Entertainment submitted for Chapter 11 personal bankruptcy on Thursday, earning it the latest casualty of the COVID-19 pandemic that has crushed entertainment and leisure industries globally.
The business explained the recent disaster as the “most challenging” in its background and reported it would use the bankruptcy proceedings to keep on talks with stakeholders and landlords, as nicely as restructure its balance sheet.
CEC mentioned both equally belongings and liabilities in the range of $1 billion to $10 billion, according to the individual bankruptcy submitting in the U.S. Personal bankruptcy Court docket for the Southern District of Texas.
U.S. and international franchise associates as perfectly as corporate entities outdoors the United States are not portion of the procedure, it mentioned.
Chuck E. Cheese and Peter Piper Pizza locations will proceed to re-open as for each federal government recommendations, CEC extra.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza restaurant and arcade venues were being re-opened, with the enterprise anticipating to preserve ongoing functions in the areas through the Chapter 11 process.
Irving, Texas-based CEC was taken personal by Apollo Global Management in 2014 in a $1.3 billion offer, including personal debt.
It has considering the fact that sought to broaden its charm further than small children and teenagers, increasing its alcohol offerings for older people.
Very last 12 months, the corporation terminated its earlier selection to merge with Leo Holdings, a blank verify organization.
As of March, CEC and its franchisees operated 612 Chuck E. Cheese and 122 Peter Piper Pizza venues, with areas in 47 U.S. states and 16 overseas nations.
PJT Associates is serving as a financial adviser, while FTI Consulting is its restructuring adviser, it mentioned.