Operations

CEC bankruptcy leaves at least 266 Chuck E Cheese, Peter Piper corporate stores operating

Logo: file

July 2, 2020

Chuck E Cheese and Peter Piper Pizza parent company — CEC Entertainment Inc. — has filed for Chapter 11 bankruptcy protection, according to its investor relations site, although its franchised locations are not included in the filing since as they operate under a separate legal and financial structure. The brand itself has not responded to this website's requests for comment or information, however.

The company has struggled in recent years, and now says it will use bankruptcy protection to work out financial issues with its stakeholders and landlords. In total, there were 734 locations of Chuck E Cheese and Peter Piper restaurant locations globally. The company did not divulge how many of those locations were corporately owned and operated but said at the time of the filing late last week that CEC had 266 Chuck E Cheese and Peter Piper Pizza restaurant and arcade venues open, with plans to open others in the future as the pandemic allows.

The brand said those stores will continue to provide dine-in, delivery and carryout services, along with parties and other events throughout the reorganization process.

"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," CEO David McKillips said on the website news release.

The company has filed court motions to obtain legal permission to continue paying employees, providing existing benefits, honoring guest gift cards and upholding commitments under its franchising and licensing agreements. Like another large restaurant bankruptcy filing announced today with Pizza Hut and Wendy's franchisee, NPC International, the CEC bankruptcy cases was filed in U.S. Bankruptcy Court for the Southern District of Texas.