Cafe chain Chuck E. Cheese father or mother CEC Amusement filed for Chapter 11 personal bankruptcy on Thursday, building it the most current casualty of the COVID-19 pandemic that has crushed entertainment and leisure industries globally.
The company explained the current crisis as the “most challenging” in its record and said it would use the personal bankruptcy proceedings to keep on talks with stakeholders and landlords, as well as restructure its equilibrium sheet.
CEC stated each assets and liabilities in the selection of $1 billion to $10 billion, in accordance to the individual bankruptcy submitting in the U.S. Personal bankruptcy Court for the Southern District of Texas.
U.S. and intercontinental franchise associates as properly as corporate entities exterior the United States are not part of the approach, it explained.
Chuck E. Cheese and Peter Piper Pizza destinations will continue to re-open as per federal government tips, CEC additional.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza cafe and arcade venues have been re-opened, with the organization expecting to manage ongoing functions in the spots throughout the Chapter 11 procedure.
Irving, Texas-based CEC was taken private by Apollo World-wide Management in 2014 in a $1.3 billion offer, such as personal debt.
It has considering that sought to broaden its charm over and above little ones and youngsters, increasing its liquor choices for grown ups.
Previous year, the business terminated its previously choice to merge with Leo Holdings, a blank verify company.
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 overseas nations.
PJT Companions is serving as a monetary adviser, though FTI Consulting is its restructuring adviser, it mentioned.