Privately-held restaurant chain California Pizza Kitchen announced that it has filed for voluntary Chapter 11 bankruptcy protection in the Southern District of Texas Thursday in a pre-negotiated deal between the company and its lenders.
CPK will receive another $46.8 million in new money debtor-in-possession financing, allowing the company to continue operations during the bankruptcy process, which the company aims to complete in under three months.
"Today’s announcement is a step towards a stronger future for California Pizza Kitchen," said Jim Hyatt, CEO of CPK. "The unprecedented impact of COVID-19 on our operations certainly created additional challenges, but this agreement from our lenders demonstrates their commitment to CPK’s viability as an ongoing business."
A hearing on California Pizza Kitchen's first day motions will be held today at 4 p.m. CT in which the company hopes to iron out the details of its bankruptcy process.
CPK joins a growing list of companies that have filed for bankruptcy in recent weeks as the global coronavirus pandemic has taken its toll on the U.S. economy.
Earlier this week, gun maker Remington Arms, one of America's oldest gun makers, filed for Chapter 11 bankruptcy protection for the second time since 2018.
On Wednesday, natural oil and gas company Denbury Resources (DNR) - Get Report unveiled its prepackaged Chapter 11 bankruptcy plan with expectations that the company would file its petition in the same Southern District of Texas court that CPK plans to file its petition.
And Men's Wearhouse parent company Tailored Brands (TLRD) - Get Report is expected to file for bankruptcy soon after it said that such a move is "likely," while fellow apparel retailer Ascena (ASNA) - Get Report filed for bankruptcy last week.