The cheesecake factory is settling allegations that it is misleading its investors

The cheesecake factory is settling allegations that it is misleading its investors
In March and April, when several restaurants were advised to close their doors in an attempt to prevent the spread of the Corona virus novel, Cheesecake factory (Cake) It also assured investors that its pickup and distribution business would allow the chain to operate “sustainably” by filing funds.

But the SEC said the internal documents painted a very different picture. The documents state that about $ 6 million is lost each week, with only about four months left.

In March, the SEC announced that the company would not be paying April rent to its landlords. But on March 23 investors were not told about that information, which was filed about measures to help protect the business. Inability to pay rent Then made public.

The SEC in its order describes the allegations and solutions, saying the discrepancies “mislead and mislead” the company’s March and April announcements. This is the first time the SEC has accused a public company of misleading investors about the impact of the Covit-19 business.

In response to CNN’s business request for comment, a A cheesecake factory spokesman pointed out one Friday The company filed funding claiming that “Fully cooperates with the SEC” regarding the settlement, without acknowledging or denying the allegations of the SEC.

Ordinary restaurants, such as the cheesecake factory, have long been associated with customers as a place to visit with friends and family, especially when severely affected by epidemics.

Including some chains Sisler, California Pizza Kitchen and CEC Entertainment, Parent Company Chuck e. Cheese, Declared bankruptcy during the crisis.

The cheesecake factory has seen its sales plummet during the crisis. In the 13 weeks ending Sept. 29, sales of cheesecake factory restaurants fell by at least a year to about 23% compared to the same period last year.

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About the Author: Max Grant

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