With the COVID crisis causing a lot of financial damage, Chuck E. Cheese is reportedly in talks with its lenders to raise money to avoid filing for bankruptcy.
According to Fox Business, the chain has also approached lenders in recent weeks to gauge their interest in providing a $200 million loan to finance a stay in bankruptcy. The discussions are taking place as a decision “looms over whether to make a $1.9 million quarterly payment on loans due at the end of June,” the report said.
Throughout the economic shutdown, Chuck E. Cheese has been doing business as Pasqually’s Pizza & Wings through food delivery apps like GrubHub, RePlay recently reported. However, like most big brands, the income is a drop in the bucket compared to usual revenues.