Chuck E Cheese Could Close All Restaurants, Including 20 In PA

PENNSYLVANIA — It appears the popular children's restaurant chain, Chuck E. Cheese, may be the latest business to close its doors permanently as a result of financial struggles amid the coronavirus pandemic. CEC Entertainment, the Texas-based company that runs 527 locations in 47 states, is nearly $1 billion in debt, reports the Wall Street Journal.

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.
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.

There are currently 20 Chuck E. Cheese locations in Pennsylvania, including Philadelphia, Pittsburgh, Levittown, Berwyn, Springfield, Warrington, and White Hall.

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. Inc. ("CEC"), 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.

With reporting by Eric DeGrechie