Cafe chain Chuck E. Cheese mother or father CEC Leisure submitted for Chapter 11 personal bankruptcy on Thursday, making it the most current casualty of the COVID-19 pandemic that has crushed amusement and leisure industries globally.
The corporation described the existing crisis as the “most challenging” in its background and said it would use the individual bankruptcy proceedings to continue on talks with stakeholders and landlords, as perfectly as restructure its harmony sheet.
CEC stated both of those assets and liabilities in the selection of $1 billion to $10 billion, according to the personal bankruptcy filing in the U.S. Individual bankruptcy Courtroom for the Southern District of Texas.
U.S. and worldwide franchise partners as well as corporate entities outside the United States are not aspect of the approach, it said.
Chuck E. Cheese and Peter Piper Pizza areas will proceed to re-open up as for each federal government pointers, CEC additional.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza restaurant and arcade venues were being re-opened, with the firm expecting to keep ongoing operations in the places in the course of the Chapter 11 procedure.
Irving, Texas-based CEC was taken non-public by Apollo International Administration in 2014 in a $1.3 billion offer, including credit card debt.
It has because sought to broaden its charm over and above small children and youngsters, growing its alcoholic beverages choices for grown ups.
Previous calendar year, the organization terminated its before decision to merge with Leo Holdings, a blank verify corporation.
As of March, CEC and its franchisees operated 612 Chuck E. Cheese and 122 Peter Piper Pizza venues, with destinations in 47 U.S. states and 16 international international locations.
PJT Companions is serving as a financial adviser, when FTI Consulting is its restructuring adviser, it claimed.