Cheese — where kids could be kids while parents nursed headaches — is filing for bankruptcy protection.
The 43-year-old chain, which drew kids with pizza, video games and a singing mouse mascot, was struggling even before the COVID-19 pandemic. But it said the prolonged closure of many outlets to because of restrictions related to the pandemic led to Thursday’s Chapter 11 filing.
CEC and its franchisees operate 734 restaurants in 47 states and 16 countries. Franchised locations aren’t included in the bankruptcy filing, the company said.CEC listed nearly $2 billion in debt and $1.7 billion in assets in its bankruptcy petition, which was filed with the U.S. Bankruptcy Court in southern Texas.
The restaurant industry has been devastated by the pandemic. Transactions at U.S. family dining restaurants plummeted more than 80% in mid-April, the height of the pandemic in the U.S., according to the NPD Group, a data and consulting firm. But in recent years, the chain has struggled. Newer competitors like Dave & Buster’s offered bigger venues, while trampoline parks like Launch and AirTime offered party alternatives.
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