Operations

California Pizza Kitchen emerges from Chapter 11

Photo: File/provided.

November 24, 2020

California Pizza Kitchen has completed its financial restructuring process and emerged from Chapter 11, with a strong position for "long-term growth," according to a company press release.

"We are excited to embark on this next chapter for CPK and build on our current business momentum. …" CEO Jim Hyatt, CEO of CPK. said in the release. "We are a stronger and healthier company as a result of the restructuring and we look forward to delivering more of our innovative, California-inspired cuisine to our loyal CPK guest community."

As part of its financial restructuring, CPK completed a debt-for-equity transaction that reduced its debt load while boosting liquidity, including exit financing for capital needed to support the business going forward. The company eliminated more than $220 million of existing funded debt from its capital structure and now faces no near-term debt maturities. CPK's equity is now held by CPK's prepetition lenders, the release said.

What's next?
The company will expand its global franchise footprint as well as continue the menu overhaul under its "Cali Health" commitment. It will also invest in marketing as well as digital and off-premise sales.

California Pizza Kitchen is based in Playa Vista, California and has more than 200 restaurants in eight countries and U.S. territories.