#Roommates, it looks like one of the most popular hangouts for kids is in a lot of financial trouble. According to recent reports, Chuck E. Cheese is approaching bankruptcy and may have to permanently close all store locations after being nearly $1 billion in debt.
@People reports, CEC Entertainment, the brand behind popular children’s food-and-games establishment Chuck E. Cheese, is close to $1 billion in debt and currently trying to approach lenders for a $200 million loan to keep the company afloat. In an effort to encourage top Chuck E. Cheese executives to stay on with the company through its financial hardship, top executives were given retention bonuses. The company plans to pay nearly $3 million total to three executives, including $1.3 million to CEO David McKillips.
Texas-based Chuck E. Cheese currently operates 610 locations in 47 states—but had to close all stores when the coronavirus pandemic emerged in March, which put a considerable financial strain on a company that was already on shaky ground. A few weeks later in April, the company announced it was considering refinancing, bankruptcy and restructuring, while laying off an estimated17,000 workers.
To make up for the money lost during the coronavirus outbreak, Chuck E. Cheese started to sell its food under the name Pasqually’s Pizza and Wings on delivery apps—and certain employees who were kept on board helped to operate Pasqually’s as a takeout brand.
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