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01/04/2021

Parent company of Chuck E. Cheese sheds $705 in debt as it exits bankruptcy

Marianne Wilson
Editor-in-Chief
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CEC Entertainment has completed its financial restructuring and emerged from Chapter 11 bankruptcy protection.

The parent company of Chuck E. Cheese and Peter Piper Pizza filed for bankruptcy in June. It emerged on Dec. 30 with a new board and with approximately $705 million of debt obligations eliminated from its balance sheet. The company now has $100 million of liquidity to support operations and growth.

"We are thrilled to have emerged from our financial restructuring process and look forward to beginning a new chapter as a stronger and healthier company well-positioned to execute on our long-term goals," said David McKillips, CEO of CEC Entertainment. "Under new ownership, and with the leadership of our new board, the CEC team is excited to continue delivering memories, entertainment, and pizza for kids and families around the world for generations to come. Behind the strength of our entire team and world-class brands, we look forward to growing through key opportunities and implementing our strategic plan."

As of December 30, CEC and its franchisees had 559 Chuck E. Cheese and 122 Peter Piper Pizza venues. 

CEV’s new executive board consists of:
•    David McKillips, CEO of CEC Entertainment
•    Joshua Acheatel, senior investment professional at Monarch Alternative Capital LP
•    Howard Altman, chief investment officer of Metropoulos & Co. 
•    Patrick J. Bartels Jr., managing member of Redan Advisors
•    Clifford Hudson, previously chairman of the board and CEO of Sonic Corp. 
•    Lance Milken, founder of Ripple Industries LLC, and
•    An additional director appointed in accordance with the limited liability company agreement of CEC Holdings.