Chuck E Cheese laid off 17K workers, paid executives $3 million, now headed to bankruptcy despite

The coronavirus pandemic may be the end of Chuck E. Cheese.

The popular kid’s restaurant and entertainment center is on the brink of bankruptcy with 610 locations closed and debt rising to $1 billion.

Chuck E. Cheese’s parent company, CEC Entertainment, is asking lenders for a $200 million to keep its business going.

CEC has also offered its top executives retention bonuses to try and keep them from leaving, including $3 million to three of its executives, according to the Wall Street Journal.

The news comes after CEC admitted in April it was considering refinancing, restructuring, or even bankruptcy following the coronavirus pandemic given how much the restaurant industry has struggled.

Chuck E. Cheese laid off 17,000 employees in March.

Chuck E. Cheese reported in April that first-quarter sales were expected to be down by 21.9% compared to 2019.

JCPenneyNeiman MarcusPier 1 Imports, and J.Crew all have filed for bankruptcy during the coronavirus pandemic, while GNC and New York & Company warned that bankruptcy is a possibility.

Image by Peggy und Marco Lachmann-Anke from Pixabay

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