Chuck E. Cheese Parent CEC Entertainment Files For Bankruptcy

(RTTNews) - Chuck E. Cheese parent company CEC Entertainment said it has filed for voluntary protection on Thursday under Chapter 11 of the U.S. Bankruptcy Code.

The company said it will use the bankruptcy process and the legal protections that it provides to eliminate debt and emerge as an even stronger company.

CEC Entertainment noted that the prolonged closures of its entertainment centers due to COVID-19 have put a strain on its finances, like several others in the dining and entertainment industries.

"While our team is excited to again roll out the red carpet for our guests and open more locations each week, it also became clear that decisive action would be necessary to address COVID-related financial challenges," CEC Entertainment CEO David McKillips said in a statement.

However, McKillips noted that Chuck E. Cheese is now open for business and it has the highest safety protocols in place at its restaurants and arcades.