Chuck E.
Cheese’s parent company, CEC Entertainment Inc., announced Thursday that it is filing for bankruptcy protection.
The 43-year-old pizza and entertainment chain synonymous with children’s birthday parties was struggling even before the coronavirus pandemic hit the country, but the prolonged closure of many outlets due to restrictions led to their filing.
As restrictions ease, CEC Entertainment has reopened 266 of its 555 company-operated Chuck E. Cheese and Peter Piper Pizza restaurants, yet parents does not seem to be willing to have birthday parties and other gatherings held at any of their locations.
The company said that they would continue to reopen locations and offer carryout and delivery while they deal with debt and leaseholders.
They clarified that franchised locations are not included in the bankruptcy filing.
CEC and its franchisees operate 734 restaurants in 47 states and 16 countries, yet the company listed nearly $2 billion in debt and $1.7 billion in assets in its bankruptcy petition.
CEO David McKillips said in a prepared statement, “The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in our company’s history.”
Chuck E. Cheese started in 1977 when they opened Chuck E. Cheese’s Pizza Time Theatre in San Jose, California.
The restaurant showcased a cast of animatronic characters led by Chuck E. Cheese, and promised that their place is “Where a kid can be a kid.”
The chain struggled in the recent years when newer competitors such as Dave and Buster’s that offered larger venues, and Launch and AirTime that offered party alternatives.
A private equity firm Apollo Global Management bought CEC in 2014, wherein they started to remodel stores, introduced updated technology like gaming cards and revamped its menu to include coffee drinks and premium beer and wine, focusing directly to parents.