CEC Entertainment’s parent company, Chuck E. Chiz, said on Thursday that it filed for Chapter 11 bankruptcy following the closure of a facility caused by the coronavirus pandemic that blew up his business.
The company, owned by Apollo Global Management, a private investment company, plans to continue its activities during the bankruptcy period and will continue to open branches that were temporarily closed during the pandemic. As of Wednesday, the company has already opened almost half of the company’s points of ownership Chuck E. Cheese and Peter Piper Pizza.
For the quarter ended March 29, CEC Entertainment measured its adjusted earnings before interest, taxes, depreciation and amortization totaled $ 39 to $ 43 million. Sales at the same store during this period, which is usually the busiest time of the year, fell 21.9%. In regulatory registration since early April, the company said it does not pay rent.
CEC Entertainment said it plans to use Bankruptcy in accordance with Chapter 11 to continue discussions with financial stakeholders and landlords in order to restructure its balance sheet to support opening efforts and a long-term strategy. Wilmington Trust is its largest lender.
The Wall Street Journal reports In early June, potential buyers surrounded the company, trying to keep their business afloat. Last year, the company announced a merger with a special acquisition company that will unveil it, but the deal failed. In 2014, Apollo bought CEC Entertainment for $ 948 million, which made it private.