The parent company of Chuck E. Cheese, CEC Entertainment Inc., has filed for Chapter 11 bankruptcy Wednesday but are continuing to re-open locations in accordance with the Center for Disease Control.  

CEC Entertainment announced Wednesday that they have filed for voluntary Chapter  11 bankruptcy in order to overcome the financial strain resulting from prolonged, COVID-19 related venue closures, according to a statement released by the company. 

The company expects to use the time and legal protections made available through the Chapter 11 process to continue discussions with financial stakeholders, as well as critical conversations with its landlords, to achieve a comprehensive balance sheet restructuring that supports its re-opening and longer-term strategic plans, according to officials. 

“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,” David McKillips, CEC’s chief executive officer said. “I am incredibly proud of what the CEC team has achieved over the past year as we launched the All You Can Play value gaming platform, expanded our remodel program and found new ways to engage with families while our venues were closed. I’m confident in the strength of our team and our world-class brands and look forward to more fully implementing our strategic plan as we put these financial challenges behind us.” 

CEC franchised locations including Santa Clarita’s location operate under separate legal and financial structures and are not included in the Chapter 11 filings. 

As of June 24, 266 company-operated Chuck E Cheese and Peter Piper Pizza restaurant and arcade venues had safely re-opened, in accordance with all CDC, federal, state and local guidelines, according to CEC Entertainment officials. 

Subject to ongoing negotiations with its landlords, the Company expects to maintain ongoing operations in these locations throughout the Chapter 11 process, providing dine-in, delivery and carry-out services, hosting birthday parties during dedicated hours and supporting fundraisers and events in the coming weeks and months, according to officials. 

The Company also plans to continue opening additional locations each week, steadily bringing more employees back to work, according to officials.  

The Company has filed customary motions with the Bankruptcy Court intended to allow CEC to maintain operations in the ordinary course including, but not limited to, paying employees and continuing existing benefits programs, honoring guest gift cards and upholding commitments under its franchising and licensing agreements. 

The motions are typical in the Chapter 11 process and CEC anticipates that they will be heard and approved in the first few days of the Chapter 11 cases, according to officials. 

CEC’s Chapter 11 cases is expected to be heard in the United States Bankruptcy Court for the Southern District of Texas. Additional information, including claims information, can be found by clicking here.

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