Cafe chain Chuck E. Cheese father or mother CEC Leisure submitted for Chapter 11 individual bankruptcy on Thursday, earning it the latest casualty of the COVID-19 pandemic that has crushed leisure and leisure industries globally.
The organization explained the existing disaster as the “most challenging” in its record and stated it would use the personal bankruptcy proceedings to continue talks with stakeholders and landlords, as very well as restructure its balance sheet.
CEC mentioned the two belongings and liabilities in the range of $1 billion to $10 billion, in accordance to the individual bankruptcy filing in the U.S. Individual bankruptcy Courtroom for the Southern District of Texas.
U.S. and international franchise companions as well as corporate entities outside the house the United States are not part of the system, it mentioned.
Chuck E. Cheese and Peter Piper Pizza places will keep on to re-open up as for every government recommendations, CEC additional.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza restaurant and arcade venues had been re-opened, with the organization anticipating to preserve ongoing operations in the locations all through the Chapter 11 course of action.
Irving, Texas-based mostly CEC was taken non-public by Apollo World Administration in 2014 in a $1.3 billion offer, which include financial debt.
It has given that sought to broaden its appeal past kids and young adults, expanding its liquor offerings for grown ups.
Previous yr, the company terminated its before final decision to merge with Leo Holdings, a blank test firm.
As of March, CEC and its franchisees operated 612 Chuck E. Cheese and 122 Peter Piper Pizza venues, with places in 47 U.S. states and 16 foreign nations around the world.
PJT Partners is serving as a monetary adviser, even though FTI Consulting is its restructuring adviser, it explained.