The 35-year-old pizza chain filed for Chapter 11 on Thursday, explaining that the process helps it “reduce its long-term debt burden, and quickly emerge from bankruptcy as a much more b ‘healthy. ” He warned it will close unprofitable locations, but did not say how many of its 200 global restaurants will be affected.
“The unprecedented impact of Covid-19 on our operations has certainly created additional challenges, but this agreement by our lenders demonstrates their commitment to the viability of CPK as an ongoing business,” said the Chief Executive Jim Hyatt in a statement.
CPK has acquired nearly $ 47 million in new funding to ensure operations continue normally. He has about $ 1
3 million in cash and has not paid rent for the past several months on most of his localities.
The temporary closure of an indoor dinner was also brutal for the company, as the food on the premise makes up 80% of its sales, the company said in a filing. Revenue is currently down 40% compared to the same time a year ago, he said.
Restaurants, particularly casual chains like CPK, have been struggling for the past few months. Closing a dinner in person in some states and the rough economy of using third-party apps like Uber Eats or DoorDash – which increase restaurant costs and encourage dinner to eat home – is a proposal to lose for many.
In recent months, Chuck E. Cheese’s parent company, Italian chain Vapiano, Le Pain Quotidien’s unit and FoodFirst Global Restaurants, which owns Bravo and Brio, have all presented failure. Even big franchises, such as NPC International which operates thousands of Pizza Hut and Wendy locations, are currently navigating the Chapter 11 process.