Chuck E. Cheese May Be Closing Soon Due to Increasing Financial Strain

Businesses of all sizes across the country have been hit hard by the COVID-19 pandemic, including Chuck E. Cheese, a food-and-games entertainment space that has gone hand-in-hand with childhood since the late 1970s.

CEC Entertainment, the brand behind the establishment, is approximately $1 billion dollars in debt, according to the Wall Street Journal (WSJ). The business has been trying to get $200 million loan to stay afloat.

On Friday, June 12, CEC Entertainment announced it would be offering top executives retention bonuses, paying close to $3 million total to three of them, including $1.3 million to CEO David McKillips, according to the company’s Securities and Exchange Commission filing.

Chuck E. Cheese currently has 610 locations across 47 states. Due to closures on account of the pandemic, the brand underwent layoffs in March, The Takeoff reported. According to the WSJ, in April the brand was considering options including refinancing, filing for bankruptcy and restructuring to ease some of the strain.

Since late May, certain locations have slowly and cautiously started opening, but it remains to be seen the role that will play in keeping doors open for good.

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