Chuck E. Cheese Nears Bankruptcy; May Close All Locations
Nothing is for sure yet, but this can't be good.
The children's entertainment venue that was founded in 1977, Chuck E. Cheese, may be closing its doors for good...and not just the one in Flint Township.
The company that runs the chain, CEC Entertainment, is reportedly $1 billion in debt and is currently seeking a $200 million loan from its lenders to stay above water.
And, in classic big-business fashion, CEC Entertainment has paid three of its top executives $3 million total as an "incentive" to stay on during these "difficult times."
How tone-deaf is THAT? People are surviving on unemployment right now and you're paying out $3m to get your rich executives NOT to leave when things get tough?
The company owns 610 locations in 47 states and, like most restaurants, was forced to shut its doors when the pandemic started. Some locations offered take-out to help replenish income, but not all.
By April, they were already considering refinancing, restructuring, and declaring bankruptcy.
About 17,000 workers were laid off in March.
Is it just me, or is anybody else absolutely amazed that these companies who have been operating for decades, successfully, couldn't survive more than a few weeks without constant business? Oh, maybe it's because they're paying their CEOs $3 million, just to hang out until things get better. Is that the problem?
I know that everybody has their own opinion of the Flint Township location, but we had our son's birthday there a few years ago and they were great and everybody had a good time.