Chuck E. Cheese Approaching Bankruptcy, May Have To Close All Stores

It hasn't been a great year for Chuck E. Cheese.

After stories went viral of the chain actually selling its pizza & wings on restaurant delivery apps under the name "Pasqually's Pizza", The Wall Street Journal reports that the company is now $1 billion in debt, and is "trying to approach lenders for a $200 million loan to keep the business afloat." It remains to be seen what will happen if that doesn't come to fruition.

In April, the brand said they were considering "refinancing, bankruptcy, and restructuring" due to the strain on the business from COVID-19.

The brand last week said it would pay out nearly $3 million to three top executives, "with the hope that they would stay on in trying times."

The company owns 610 stores in 47 states, but they all had to be shut down due to the virus. A few employees stayed on to help operate the "Pasqually's Pizza" operation, but nearly 17,000 of the employees were laid off in March.


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