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The
company described the current crisis as the "most challenging"
in its history and said it would use the bankruptcy proceedings
to continue talks with stakeholders and landlords, as well as
restructure its balance sheet.
CEC listed both assets and liabilities in the range of $1
billion to $10 billion, according to the bankruptcy filing in
the U.S. Bankruptcy Court for the Southern District of Texas.
U.S. and international franchise partners as well as corporate
entities outside the United States are not part of the process,
it said.
Chuck E. Cheese and Peter Piper Pizza locations will continue to
re-open as per government guidelines, CEC added.
As of Wednesday, 266 Chuck E. Cheese and Peter Piper Pizza
restaurant and arcade venues were re-opened, with the company
expecting to maintain ongoing operations in the locations
throughout the Chapter 11 process.
Irving, Texas-based CEC was taken private by Apollo Global
Management <APO.N> in 2014 in a $1.3 billion deal, including
debt.
It has since sought to broaden its appeal beyond children and
teenagers, expanding its alcohol offerings for adults.
Last year, the company terminated its earlier decision to merge
with Leo Holdings <LHC_u.N>, a blank check company.
As of March, CEC and its franchisees operated 612 Chuck E.
Cheese and 122 Peter Piper Pizza venues, with locations in 47
U.S. states and 16 foreign countries.
PJT Partners is serving as a financial adviser, while FTI
Consulting is its restructuring adviser, it said.
(Reporting by Kanishka Singh in Bengaluru; Editing by Krishna
Chandra Eluri and Anil D'Silva)
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