Is Chuck E. Cheese closing? Not yet, but parent company CEC Entertainment has filed for bankruptcy.
The idea of Chuck E. Cheese closing down isn’t a farfetched one considering the damage the novel coronavirus has done to the business. Many locations were closed down due to the pandemic and only 266 corporate-owned facilities are currently open to the public
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According to CEC Entertainment, the exact reason for the bankruptcy is to help it overcome these troubles. The closures have put a significant financial strain on the business and it needs time to recover.
CEC Entertainment says that it will take time during the bankruptcy process to negotiate with financial stakeholders. It also needs to go over its balance sheet and hold discussions with landlords.
David McKillips, CEO of CEC Entertainment, said this about the news.
“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.”
It’s worth pointing out that Chuck E. Cheese locations won’t be closing during the bankruptcy. The company plans to continue normal operations while it navigates the bankruptcy procedure. It also bears mentioning that this only affects corporate-owned locations in the U.S. Franchised locations and those outside the country aren’t affected by the bankruptcy.
As of this writing, William White did not hold a position in any of the aforementioned securities.
