Chuck E. Cheese Approaches Bankruptcy, May Permanently Close All Stores

After months of keeping their doors shut amid the coronavirus pandemic, popular kid’s restaurant Chuck E. Cheese may not ever reopen.

The brand behind the food-and-games establishment, CEC Entertainment, is nearly $1 billion in debt and is trying to approach lenders for a $200 million loan to keep the business afloat, according to the Wall Steet Journal.

On Friday, the brand announced it would be offering its top executives retention bonuses with the hopes that they would stay on in trying times.

CEC said it would pay nearly $3 million total to three executives, including $1.3 million to CEO David McKillips, the Securities and Exchange Commission filing showed.

The Texas-based restaurant currently operates 610 locations in 47 states but had to close its stores when the pandemic struck, making it extremely difficult for the company to raise capital.

In April, the brand said they were considering refinancing, bankruptcy and restructuring after the pandemic began to cause strain on the restaurant industry, the WSJ reported.

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