(Reuters) – Chuck E. Cheese restaurant chain, parent of CEC Entertainment, filed for Chapter 11 bankruptcy on Thursday, becoming the latest victim of the COVID-19 pandemic that has crushed the entertainment and entertainment industries. leisure worldwide.
FILE PHOTO: A Chuck E. Cheese restaurant in Oceanside, California, USA shown. USA, January 18, 2017. REUTERS / Mike Blake
The company described the current crisis as the “most challenging” in its history, and said it would use bankruptcy procedures to continue talks with stakeholders and owners, as well as to restructure its balance sheet.
CEC listed both assets and liabilities in the range of $ 1 billion to $ 10 billion, according to the bankruptcy filing in the United States Bankruptcy Court for the Southern District of Texas.
American and international franchise partners, as well as corporate entities outside of the United States, are not part of the process, he said.
The Chuck E. Cheese and Peter Piper Pizza locations will continue to open according to government guidelines, the CCA added.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza restaurants and game rooms reopened, and the company hoped to maintain ongoing operations at the sites throughout the Chapter 11 process.
CEC based in Irving, Texas, was taken private by Apollo Global Management (APO.N) in 2014 in a $ 1.3 billion settlement, including debt.
Since then, he has tried to expand his appeal beyond children and adolescents, expanding his offer of alcohol for adults.
Last year, the company terminated its previous decision to merge with Leo Holdings (LHC_u.N), a blank checking company.
As of March, CEC and its franchisees operated 612 Chuck E. Cheese locations and 122 Peter Piper Pizza locations, with locations in 47 US states. USA And 16 foreign countries.
PJT Partners serves as a financial advisor, while FTI Consulting is its restructuring advisor, he said.
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