Cafe chain Chuck E. Cheese parent CEC Amusement filed for Chapter 11 individual bankruptcy on Thursday, making it the most current casualty of the COVID-19 pandemic that has crushed amusement and leisure industries globally.
The business described the present-day crisis as the “most challenging” in its history and reported it would use the bankruptcy proceedings to go on talks with stakeholders and landlords, as very well as restructure its harmony sheet.
CEC listed the two property and liabilities in the selection of $1 billion to $10 billion, in accordance to the bankruptcy filing in the U.S. Bankruptcy Court docket for the Southern District of Texas.
U.S. and international franchise partners as effectively as company entities outside the house the United States are not section of the method, it claimed.
Chuck E. Cheese and Peter Piper Pizza spots will carry on to re-open as for every authorities recommendations, CEC extra.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza restaurant and arcade venues ended up re-opened, with the firm expecting to preserve ongoing operations in the areas during the Chapter 11 approach.
Irving, Texas-primarily based CEC was taken personal by Apollo World wide Management in 2014 in a $1.3 billion deal, such as credit card debt.
It has considering that sought to broaden its attraction past little ones and teenagers, expanding its alcohol offerings for grown ups.
Last 12 months, the business terminated its earlier conclusion to merge with Leo Holdings, a blank look at corporation.
As of March, CEC and its franchisees operated 612 Chuck E. Cheese and 122 Peter Piper Pizza venues, with locations in 47 U.S. states and 16 foreign countries.
PJT Companions is serving as a fiscal adviser, when FTI Consulting is its restructuring adviser, it mentioned.