The parent company of Chuck E. Cheese, CEC Entertainment, said on Thursday it is filing a Chapter 11 bankruptcy in what seems to be the “financial strain” of a mass restaurant closure due to the coronavirus pandemic. It plans to close 34 locations nationwide that were still open when the virus began.
The company filed a list of 45 leases it plans to reject, including five in California, four in Florida, four in Massachusetts, three in Ohio, and three in Oklahoma. The list includes 11 locations that had already closed before the spread of COVID-19.
The company said it expects to continue operating many of the family-oriented restaurants, which include the Peter Pizza chain, as it reorganizes under the federal bankruptcy court.
As of June 24th, CEC reported that 266 company-operated Chuck E. Cheese and Peter Piper Pizza locations had reopened, which represents about half of its 555 company-owned restaurants. These restaurants will continue to offer dine-in, delivery, and carry out services, as well its known for hosting birthday parties, while additional locations will continue to reopen, said in a statement according to prnewswire.
CEC had also requested a judge’s permission to continue to honor games credits, tickets, tokens, gift cards, customer deposits, discount offers, and loyalty accounts, as long as the company remains in business.
With its venues temporarily closed due to COVID-19, the company lost more than 90% of its revenue despite efforts to ramp up food delivery and takeout. During that period, the company was backed up on rent and multiple locations, according to a court filing.
“In ordinary times, the company would be financially sound,” CEC Chief Financial Officer James Howell said in the court document.
Here is the full of Chuck E. Cheese and Peter Piper Pizza leases that CEC Entertainment has requested court permission to reject:
- Ladera Heights
- San Bernardino
- El Monte
- Long Beach
- Diamond Bar
- Grand Junction
- Fort Collins
- Green Acres
- Miami Gardens
- North Lauderdale
- Vernon Hills
- Las Vegas-McCarran
- Las Vegas-Saraha
- Oklahoma City-Del City
- Oklahoma City-Westgate