(Photo courtesy insider.com)
It’s official: Chuck E. Cheese is bankrupt. Chuck E. Cheese’s parent company CEC Entertainment said it has filed for Chapter 11 bankruptcy protection after closures made necessary by the coronavirus pandemic devastated business.
Don’t worry, there are more elementary school birthday parties in Chuck E. Cheese’s future. The popular children’s restaurant expects to continue operations through bankruptcy and will still gradually reopen locations that were temporarily closed during the pandemic.
CEC Entertainment said it expects to use the Chapter 11 bankruptcy to continue negotiating with financial stakeholders and landlords to restructure its balance sheet and support its reopening efforts and long-term strategy.
“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 and get back to the business of delivering memories, entertainment and pizzas for another 40 years and beyond,” said David McKillips, the chief executive of CEC.