Cafe chain Chuck E. Cheese guardian CEC Amusement filed for Chapter 11 bankruptcy on Thursday, earning it the newest casualty of the COVID-19 pandemic that has crushed enjoyment and leisure industries globally.
The business described the recent crisis as the “most challenging” in its background and said it would use the individual bankruptcy proceedings to keep on talks with stakeholders and landlords, as properly as restructure its balance sheet.
CEC shown equally property and liabilities in the vary of $1 billion to $10 billion, in accordance to the bankruptcy submitting in the U.S. Individual bankruptcy Courtroom for the Southern District of Texas.
U.S. and global franchise associates as effectively as company entities outside the United States are not component of the process, it mentioned.
Chuck E. Cheese and Peter Piper Pizza places will continue on to re-open up as for each federal government rules, CEC additional.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza cafe and arcade venues were being re-opened, with the corporation anticipating to retain ongoing functions in the locations through the Chapter 11 system.
Irving, Texas-primarily based CEC was taken personal by Apollo Worldwide Administration in 2014 in a $1.3 billion deal, which include personal debt.
It has given that sought to broaden its charm over and above small children and young people, expanding its alcoholic beverages offerings for older people.
Past year, the company terminated its previously decision to merge with Leo Holdings, a blank examine organization.
As of March, CEC and its franchisees operated 612 Chuck E. Cheese and 122 Peter Piper Pizza venues, with spots in 47 U.S. states and 16 overseas nations.
PJT Partners is serving as a economic adviser, whilst FTI Consulting is its restructuring adviser, it mentioned.