The COVID-19 pandemic has destroyed lives and businesses all across the world(Chuck E Cheese). It has led to such mass disruption of economies on an unprecedented scale. We have seen large conglomerates being dilapidated due to the pandemic.
This week we see another huge company falling prey to the pandemic. So, we thought it would be appropriate to talk about it and let our readers know about it.
Chuck E Cheese parent company files for bankruptcy
The parent company has filed for bankruptcy. It has stated store closure and curfew orders as the driving factors behind the move. It has said that filing for Chapter 11 will protect its long term plans to restructure and opening up of the chain.
Although they have filed for bankruptcy, they show no intention for closing up their many store locations. CEC is famous as a location especially when it comes to children’s birthdays. There is also Peter Piper Pizza Locations which is present in four dozen states.
They have reopened about 555 of their stores. This happened after several orders lifting certain pandemic restrictions were passed. Hence, they started with dining, delivery and carryout services. It also started hosting birthday parties at certain hours of the day.
Chuck E Cheese is based out in Irving, Texas. It has filed for bankruptcy in the Southern District of Texas. The company has listed about $1.7 billion in assets and about $2 billion in debt. They have requested a virtual hearing for grant of any interim relief.
There are also some other important announcements made by the company. They have said that the company will continue to pay its 16,400 employees. It was also surprising that the company will continue to honour any gift cards. If there are any franchising and licensing agreements, the company will continue to be bound by those. But it shall be made clear that any franchising agreements in lieu of CEC and Peter Piper Pizza are not included.
It is hard to see that a company which generated over $912 million is about to go under. They have not released their earnings of the first quarter due to the pandemic.