Chuck E. Cheese opened its first location in 1977 in San Jose, California, and has managed to stay around ever since. The restaurant serves as a great place for families to go who want to celebrate a child’s birthday or a milestone in their life. It’s the place “where a kid can be a kid.”
Unfortunately, sources including WCTV recently announced that the restaurant has filed for chapter 11 bankruptcy amid the COVID-19 pandemic. After the business was forced to close all of its locations to help curb the spread of the virus, profits took a dip. Although the restaurant was already offering food delivery on certain apps like Grubhub, operating under the alias “Pasqually’s Pizza & Wings,” the company wasn’t bringing in enough as it truly thrived off of the profits it made from the dine-in services it offered.
Between the circumstances the restaurant was already facing coupled with the challenges the COVID-19 brought, the company behind Chuck E. Cheese decided it was time to file for bankruptcy. In CEC Entertainment Inc.’s bankruptcy petition, it listed almost $2 billion in debt along with $1.7 billion in assets. Despite the recent filing, the source says CEC has reopened at least 266 of its 555 company-operated Chuck E. Cheese and Peter Piper Pizza restaurants as COVID-19 restrictions ease, but the company worries many parents might be leery of hosting their child’s next birthday at one of its locations.
Trouble was Already Brewing for Chuck E. Cheese Prior to the Pandemic
Although the pandemic was the final straw that pushed Chuck E. Cheese to file for bankruptcy, the chain was already struggling, according to the news source. After competitors with similar business models came out of the gate with larger venues that offered more for families to do, the company had to make some major adjustments including remodeling and updating the technology it was using inside its restaurants. It also “revamped its menu, adding coffee drinks and premium beer and wine.”
While the company was slowing starting to see an increase in sales in 2019, the COVID-19 pandemic then struck.
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Before you decide that bankruptcy is the best option for you, you need to become more informed on the process as well as the pros and cons of filing. The Tulsa, OK bankruptcy attorneys at the Henson Law Firm, PLLC would be happy to take the time to help you understand what the bankruptcy process entails as well as which type would be the most suitable for you to file for. If you are ready to learn more about filing for bankruptcy and how to stop the harassing phone calls, call 918-551-8995 today for a free consultation.
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