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Chuck E. Cheese's Parent Company Files For Bankruptcy

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Chuck E. Cheese's parent company, CEC Entertainment—which also owns pizza chain Peter Piper Pizza—said Thursday it is voluntarily filing for Chapter 11 bankruptcy. The restaurant group cited the pandemic, and strain from keeping its venues closed, as reasoning for the filing.

However, the company also said it plans to continue to reopen its restaurants during the bankruptcy process. So far, 266 of its 555 company-operated venues have reopened. According to an April regulatory filing, CEC Entertainment stopped paying rent that month.

"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, CEC's Chief Executive Officer.

According to the company, over half a million birthdays are celebrated at Chuck E. Cheese's across the U.S. annually.

CEC Entertainment filed for Chapter 11 bankruptcy "in order to overcome the financial strain resulting from prolonged, COVID-19 related venue closures and position the Company for long-term success," according to a statement released by the company.

Rental car company Hertz  (HTZ) - Get Free Report, and retailers like Neiman Marcus, have befallen similar fates during the pandemic.

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