Operations

Chuck E Cheese parent emerges from Chapter 11 with new owners, board

Photo: iStock.

January 4, 2021

The parent company of Chuck E. Cheese and Peter Piper Pizza restaurants, CEC Entertainment, said it has emerged from it Chapter 11 process of financial restructuring and reorganization in U.S. Bankruptcy Court . It eliminated approximately $705 million of debt obligations and has a new board and ownership, according to a news release.

"We are thrilled to have emerged from our financial restructuring process and look forward to beginning a new chapter as a stronger and healthier company, well-positioned to execute on our long-term goals," CEC CEO David McKillips said in the release. "Under new ownership, and with the leadership of our new board, the CEC team is excited to continue delivering memories, entertainment, and pizza for kids and families around the world for generations to come. Behind the strength of our entire team and world-class brands, we look forward to growing through key opportunities and implementing our strategic plan."

Through the Chapter 11 process, which began in July, the company said it was able to strengthen its financial standing by reducing approximately $705 million of debt obligations. At emergence, the company said it has over $100 million of liquidity to support operations and growth initiatives.

CEC's new board of directors includes the following seven members:

• David McKillips, CEC CEO.
• Joshua Acheatel, senior investment professional at Monarch Alternative Capital LP.
• Howard Altman, Metropoulos & Co. CIO.
• Patrick J. Bartels Jr. Redan Advisors managing member.
• Clifford Hudson, former Sonic Corp. chairman of the board.
• Lance Milken, Ripple Industries LLC founder/former Apollo Global Management, Inc. senior partner.
• An additional director appointed in accordance with the limited liability company agreement of CEC Holdings.

As of Dec. 30, the company and its franchisees operate 559 Chuck E. Cheese and 122 Peter Piper Pizza venues. CEC Entertainment said it will continue opening additional locations as it is safe to do so. The company, based in Irving, Texas, has stores in 47 states and 15 foreign countries and territories.