Restaurant chain Chuck E. Cheese parent CEC Leisure filed for Chapter 11 personal bankruptcy on Thursday, making it the most recent casualty of the COVID-19 pandemic that has crushed leisure and leisure industries globally.
The corporation explained the latest disaster as the “most challenging” in its heritage and reported it would use the individual bankruptcy proceedings to continue on talks with stakeholders and landlords, as well as restructure its balance sheet.
CEC stated equally belongings and liabilities in the vary of $1 billion to $10 billion, according to the bankruptcy submitting in the U.S. Bankruptcy Court for the Southern District of Texas.
U.S. and intercontinental franchise partners as nicely as corporate entities outdoors the United States are not part of the system, it mentioned.
Chuck E. Cheese and Peter Piper Pizza places will proceed to re-open up as for every federal government rules, CEC included.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza cafe and arcade venues were re-opened, with the corporation anticipating to sustain ongoing functions in the locations in the course of the Chapter 11 course of action.
Irving, Texas-dependent CEC was taken private by Apollo World wide Administration in 2014 in a $1.3 billion deal, including credit card debt.
It has since sought to broaden its charm past kids and young people, increasing its liquor choices for adults.
Previous calendar year, the enterprise terminated its previously determination 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 areas in 47 U.S. states and 16 foreign nations around the world.
PJT Companions is serving as a fiscal adviser, while FTI Consulting is its restructuring adviser, it explained.