He gave a 35-year-old pizza chain Thursday in Chapter 11, explaining that the process would help him “reduce the long-term debt burden and emerge quickly from bankruptcy as a much stronger company.” He warned that he would close unprofitable places, but did not say how many of his 200 global restaurants would be affected.
“The unprecedented impact of Covid-19 on our operations has certainly brought further challenges, but this agreement of our creditors demonstrates their commitment to CPK’s viability as a continuing business,” said CEO Jim Hyatt.
CPK has secured new financing of almost $ 47 million to ensure that operations continue normally. He has about $ 1
3 million in cash on hand and has not paid rent for the past few months in most of his cities.
The temporary closure of meals indoors was also brutal for the company, as table meals on site represent 80% of its sales, the company said in its submission. Revenues are currently 40% lower than in the same period last year.
Restaurants have been plagued in recent months, especially by regular chains such as CPK. The end of personal catering in some states and the gross economy of using third-party applications such as Uber Eats or DoorDash – which increase restaurant costs and encourage guests to eat at home – is a loss to many.
In recent months, the parent company Chuck E. Cheese, the Italian company Vapiano, the American unit Le Pain Quotidien and FoodFirst Global Restaurants, owned by Bravo and Brio, have filed for bankruptcy. Even large franchises, such as NPC International, which operates thousands of Pizza Hut and Wendy sites, are currently navigating the process in Chapter 11.