Children’s party venue Chuck E. Cheese is on the brink of Chapter 11 bankruptcy and talking to lenders to raise money amid the coronavirus pandemic, according to a report in the Wall Street Journal.
The brand’s parent, CEC Entertainment Inc., is nearly $1 billion in debt and trying to secure $200 million in loans, the report says.
The report also says the company has a $1.9 million quarterly payment due at the end of the month.
There are currently over 615 locations in the world, including 10 each in New Jersey and Pennsylvania, according to Chuck E. Cheese’s website.
It’s unknown how many stores are at risk of permanently closing.
A Chuck E. Cheese spokesperson didn’t immediately respond to a request for comment.
Chuck E. Cheese reported in April that first-quarter sales were expected to be down by 21.9% compared to 2019. »