Chuck E. Cheese Could Shutter Skokie Location, Over 500 Others

SKOKIE, IL — The economic fallout of the coronavirus pandemic is poised to shutter the popular children's chain Chuck E. Cheese, which has 527 locations in 47 states. The restaurant's parent company, Texas-based CEC Entertainment, is nearly $1 billion in debt, the Wall Street Journal reports.

Chuck E. Cheese, known for hosting children's birthday parties, had to close all of its stores in March when the pandemic struck. According to the Journal, it stopped making its monthly rent payments, furloughed most hourly employees and about two-third of all its support staff.

The chain's Skokie location, at 7143 Carpenter Road, was reopened in November 2019 following a remodel. The restaurant and entertainment center at the Village Crossing shopping center was among the first to get the new look as part of "major nationwide rebranding."

In recent weeks, CEC Entertainment has approached lenders seeking a $200 million loan to delay bankruptcy and deciding whether to make a nearly $2 million quarterly debt payment due at the end of the month, according to the Journal.

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There are currently 21 Chuck E. Cheese locations in Illinois, including Skokie, Joliet, Naperville, Darien, Arlington Heights, Tinley Park, Batavia, Chicago, Crystal Lake, Gurnee, Rockford and Springfield.

Chuck E. Cheese, which opened in 1977, serves pizza, complemented by arcade games, amusement rides and animatronic displays with a focus on family entertainment.

CEC Entertainment, headquartered in Irving, Texas, was originally incorporated under the name ShowBiz Pizza Place, Inc. In 1998, the company changed its name.

The asset management firm Apollo Global Management purchased Chuck E. Cheese in 2014 and subsequently took it private. Last week, CEC announced nearly $3 million in what the Journal described as "prebankruptcy bonuses" for a trio of top executives last week.