Chuck E. Cheese Is Reportedly Approaching Bankruptcy and Could Close All Locations

The chain is looking for a loan

June 11, 2020
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    Chuck E. Cheese is not immune to the economic downturn due to the coronavirus pandemic.

    The popular children's restaurant could be filing for bankruptcy after 43 years in business and is in danger of closing all 610 of its locations across 47 states, reported People.

    Chuck E. Cheese's parent company, CEC Entertainment, is $1 billion in debt and is seeking a $200 million loan to stay in business, according to the Wall Street Journal.

    Since the onset of the pandemic in March, the chain has had to lay off 17,000 employees and tried clever ways to keep business going like listing themselves as Pasqually's Pizza & Wings on Grubhub.

    In April, CEC also mentioned they were looking at bankruptcy, refinancing, and restructuring the business in the wake of the spread of COVID-19, the outlet reported.

    Regardless of how the Chuck E. Cheese situation works out, as many as 25,000 retail stores across the country could permanently shutter by the end of the year, according to new data, reported CNN.

    The estimated closures are documented in a new report by Coresight Research, which also indicated this year has already seen 4000 stores close. The advisory firm believes a snowball effect will transpire leading closures to top last year’s record of over 9300 stores closing up shop.

    J.C. Penney, Victoria's Secret and Starbucks are just a few of the retailers that have announced store closures in the last few months.

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