June 16, 2020
By: Staff Report
IRVING TEXAS – CEC Entertainment, the Texas-based company that runs 527 Chuck E. Cheese locations in 47 states, has $1 billion in debt, reports the Wall Street Journal.
CEC Entertainment had to close all of its stores in March when the COVID-19 pandemic took over globally. According to the Wall Street Journal, CEC Entertainment stopped making its monthly rent payments, furloughed most hourly employees, and about two-thirds of all its support staff.
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 Wall Street Journal.
The news comes after CEC admitted in April it was considering refinancing, restructuring, or even bankruptcy following the coronavirus pandemic given how much the restaurant industry has struggled.