Chuck E. Cheese, Peter Piper Pizza parent company files for Chapter 11 bankruptcy protection amid pandemic closings

Chuck E. Cheese, Peter Piper Pizza parent company files for Chapter 11 bankruptcy protection amid pandemic closings

play Show Caption Hide Caption Chuck E. Cheese changes name on GrubHub to sell pizza

Chuck E. Cheese restaurants have left some GrubHub customers feeling duped. Chuck E. Cheese uses Pasqually ‘s Pizza & Wings on GrubHub to deliver food. Wibbitz Whether a kid can hush be a kid is immediately astir to a federal bankruptcy evaluator. The parent caller of Chuck E. Cheese, which used the motto “ where a kyd can be a kid ” to promote its national chain of pizza-and-amusement venues, filed for chapter 11 bankruptcy protection late Wednesday. The move came after the coronavirus pandemic forced the company to temporarily close locations. The chain has besides been weighed down by debt it accumulated in a private fairness buyout respective years ago. parent company CEC Entertainment, which besides owns the Peter Piper Pizza chain, said it hopes to use the chapter 11 serve to cut debt, negociate concessions with landlords and emerge as a more sustainable entity. CEC David McKillips issued a statement calling the pandemic “ the most challenge event in our company ‘s history ” and said the caller hopes to ” get back to the clientele of delivering memories, entertainment and pizza for another 40 years and beyond. ” COVID-19 relief: Think that excess $ 600 in unemployment will last until the end of July ? Think again.

J.D. Power: These are the 26 highest-quality cars, trucks, SUVs of 2020 CEC said franchise locations are not separate of the bankruptcy. Known as a finish for birthday parties, arcade games and pizza, the company and its franchisees jointly operate more than 600 Chuck E. Cheese locations and more than 120 Peter Piper Pizza venues in 47 states and 16 early countries or territories. It was not immediately clear whether CEC plans to close any locations permanently in bankruptcy. The party said it ‘s attempting to negotiate lower lease payments, a work that leaves open the hypothesis of permanent wave closures. As of Wednesday, 266 company-run locations had reopened following temp closings due to COVID-19. Another 282 company-run locations remain close. “ subject to ongoing negotiations with its landlords, the Company expects to maintain ongoing operations in these locations throughout the chapter 11 process, providing dine-in, delivery and carry-out services, hosting birthday parties during dedicate hours, and supporting fundraisers and events in the come weeks and months, ” CEC said in a statement. “ The Company besides plans to continue opening extra locations each week, steadily bringing more employees back to exercise. ” In its bankruptcy request, CEC listed $ 2 billion in debt and $ 1.7 billion in liabilities.

CEC Entertainment is owned by secret equity firm Apollo Global Management, which acquired the company in a leverage buyout in 2014. In 2019, Apollo announced that it would combine CEC with Leo Holdings in a deal that would make Chuck E. Cheese publicly traded. But that deal was belated scrapped. Follow USA TODAY reporter Nathan Bomey on Twitter @ NathanBomey .