The party's over! Chuck E. Cheese parent company files for bankruptcy as COVID-19 cripples the restaurant chain already struggling with $29million in losses from last year

The parent company of Chuck E. Cheese has filed for Chapter 11 bankruptcy Thursday, saddled by a huge pile of debt and dismal sales due to COVID-19 lockdowns enforced across much of the country.
CEC Entertainment, which also owns Peter Piper Pizza, said it plans to use the bankruptcy proceedings to talk to stakeholders and landlords and to restructure its balance sheet. 
'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" CEO David McKillips said Thursday in a prepared statement. 

Chuck E. Cheese restaurants are a popular children's party venue and have been especially impacted by closures enforced by the coronavirus pandemic. 
The parent company of Chuck E. Cheese filed for Chapter 11 bankruptcy on Thursday, saddled by a huge pile of debt and dismal sales due to COVID-19 lockdowns enforced across much of the country
The parent company of Chuck E. Cheese filed for Chapter 11 bankruptcy on Thursday, saddled by a huge pile of debt and dismal sales due to COVID-19 lockdowns enforced across much of the country
Chuck E. Cheese is a popular children's party venue, known for its games. The restaurants largely rely on dine-in customers, as opposed to other establishments which have been able to survive by offering take-out services
Chuck E. Cheese is a popular children's party venue, known for its games. The restaurants largely rely on dine-in customers, as opposed to other establishments which have been able to survive by offering take-out services
The restaurants largely rely on dine-in customers, as opposed to other establishments which have been able to survive by offering take-out services. 
There are currently 612 company-operated Chuck E Cheese and Peter Piper Pizza restaurants in 47 states throughout the U.S. 
As of Wednesday, 266 of the venues have reopened for businesses, and the CEC Entertainment says they plan to keep them open throughout Chapter 11 proceedings.
However, even the Chuck E. Cheese franchises that have reopened are likely to struggle for some time. 
Parents may not be particularly enthused about throwing children's birthday parties inside the restaurants amid the current health crisis.  
Texas-based CEC, which was taken private by Apollo Global Management in a leveraged buyout in 2014, joins a growing list of high-profile corporate collapses due to the COVID-19 pandemic.  
The company listed assets and liabilities of $1 billion to $10 billion, according to the bankruptcy filing in the U.S. Bankruptcy Court for the Southern District of Texas.
CEC reported nearly $29 million in losses last year, compared to losses of $20.4 million in 2018.
Peter Piper Pizza is also owned by CEC Entertainment. One of the California franchises is pictured
Peter Piper Pizza is also owned by CEC Entertainment. One of the California franchises is pictured 
Chuck E. Cheese's bid to boost sales through delivery apps earlier this year only created more problems. 
The restaurant chain sold its products under the alias 'Pasqually's Pizza & Wings's', prompting many customers to believe they were ordering from a local business.
A number of prominent companies have filed for bankruptcy in the three months since the coronavirus crisis began. 
Rental car giant Hertz filed for Chapter 11 last month after failing to reach a standstill agreement with its top lenders.  The Wall Street Journal reported that the company has roughly $19billion of debt. 
 Clothing brand J. Crew and department stores Neiman Marcus and JCPenney have all declared bankruptcy back in April. 
The party's over! Chuck E. Cheese parent company files for bankruptcy as COVID-19 cripples the restaurant chain already struggling with $29million in losses from last year The party's over! Chuck E. Cheese parent company files for bankruptcy as COVID-19 cripples the restaurant chain already struggling with $29million in losses from last year Reviewed by STATION GOSSIP on 01:02 Rating: 5

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