FTI Consulting is handling the bankruptcy of the Chuck E. Cheese, chain of pizza-based children's entertainment centers, which is blaming the COVID-19 pandemic for its financial woes.
CEC Entertainment, the parent company, said Chapter 11 protection would enable it to continue discussions with financial stakeholders and landlords about concessions needed to restructure its balance sheet to support re-opening of its restaurants.
As of June 24, 266, Chuck E. Cheese and Peter Piper Pizza arcades and restaurants have re-opened, offering dine-in/carry-out food service, hosting birthdays and fundraisers.
At the end of the first quarter, there were 612 Chuck E. Cheese and 122 Peter Piper Pizza outlets that were company-owned and franchisees.
“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,” David McKillips, CEC’s CEO, said in a statement.
FTI Consulting's Angelo Thalassinos and Sarah Rosselet handle the CEC business.