Operations

California Pizza Kitchen files for Chapter 11

July 30, 2020

California Pizza Kitchen has entered into a restructuring support agreement with its lenders to equitize much of its debt. As part of the agreement, California Pizza Kitchen has filed for Chapter 11 protection, according to a press release.

The company aims to close unprofitable locations, reduce its long term debt and recover from bankruptcy quickly. This agreement also includes $46.8 million in new money debtor-in-possession financing to enable ongoing operation of other CPK restaurants.

"Today's announcement is a step toward a stronger future for California Pizza Kitchen," Jim Hyatt, CEO, CPK, said in the release. "The unprecedented impact of COVID-19 on our operations certainly created additional challenges, but this agreement from our lenders demonstrates their commitment to CPK's viability as an ongoing business. Throughout this process, we will continue to deliver the same innovative, California-inspired cuisine that we have been serving for over 35 years."