AMERICA — Chuck E. Cheese is in talks with lenders to avoid filing for bankruptcy, according to the Wall Street Journal. Their parent company, CEC Entertainment, is reportedly almost $1 billion in debt.
According to the reports, talks with existing lenders have involved efforts to raise money. Additional lenders have also been approached for a $200 million loan to keep the business afloat.
On Friday, June 5, the company announced it would pay almost $3 million total to three executives. The amount included $1.3 million going to CEO David McKillips, the Securities and Exchange Commission filing showed.
Chuck E. Cheese is based out of Irving, Texas. The franchise claims 610 locations across 47 states. CEC reported various locations had to be closed due to the pandemic, and fired 17,000 employees in March. In April, the company announced they were looking at options in filing for bankruptcy.
In May, a CEC Entertainment Inc. rep offered a statement on Pasqually’s Pizza & Wings, saying “CEC Entertainment, Inc. recently launched Pasqually’s Pizza & Wings nationwide. The inspiration was rooted in the desire to create a premium pizza while staying true to the CEC brand.”
Pasqually’s Pizza & Wings was a restaurant that appeared on Grub Hub prior to the statement’s release. The name is a reference to a musician that plays in the Chuck E. Cheese band. Employees from Chuck. E. Cheese were helping manage the take-out orders.
No further statements have been made regarding the future of the company.
