Chuck E. Cheese Almost $1 Billion In Debt, Approaching Bankruptcy and Could Close All Locations

Chuck E. Cheese almost $1 billion in debt, approaching bankruptcy and could close all locations.

Chuck E. Cheese, one of the most popular hangouts for kids is in a lot of financial trouble. According to recent reports, Chuck E. Cheese is approaching bankruptcy and may have to permanently close all their store locations after being in a debt of nearly $1 billion.

According to People Magazine, CEC Entertainment, the brand behind popular children’s food-and-games establishment Chuck E. Cheese, is close to $1 billion in debt and currently is trying to approach lenders for a $200 million loan to keep the company moving. Top executives were given retention bonuses in an effort to encourage top Chuck E. Cheese executives to stay on with the company through its financial hardship. Chuck E. Cheese plans to pay nearly $3 million total to three of their executives. The sum of $1.3 million would be paid to CEO David McKillips.

Chuck E. Cheese currently operates in 47 states with 610 locations, but they had to close all their stores when the coronavirus pandemic emerged in March, which put a considerable financial strain on a company that was already on unstable situation. Sometime in April, Chuck E. Cheese announced that it was considering refinancing, bankruptcy and restructuring, while laying off it’s staff.