Is Chuck E. Cheese going out of business? – you might ask if you have heard the news about their recent bankruptcy filing.
Chuck E. Cheese has been a pioneer in bringing entertainment with lip-smacking pizzas to both kids and adults alike. What was once known for this unique concept is struggling to make ends meet.
So what happened with Chuck E. Cheese exactly? Is it really going out of business? Let us find out the truth in this guide!
About Chuck E. Cheese
Chuck E. Cheese is a popular American family entertainment chain that was founded on May 17, 1977, in San Jose, California, by Nolan Bushnell.
Chuck E. Cheese was one of a kind when it first began operations, thanks to its innovative concept of bringing entertainment and pizzas under one roof.
The chain’s name was taken from its mascot, Chuck E. Cheese, and was initially known as Chuck E. Cheese Pizza Time Theatre. But over time, as a part of the rebranding strategy, the name was shortened to simply Chuck E. Cheese.
The Rise & Fall of Chuck E. Cheese
In the past 46 years, Chuck E. Cheese has seen a lot. The namesake rodent of this popular pizza and entertainment center has watched generations grow up.
Although Chuck E. Cheese was founded in 1977, it did not go public until 1988, and by 2005, the company grew to a whopping 500+ locations.
Everything was good until 2010 when the sales of Chuck. E. Cheese started to go downhill. This led to the revamping of the mascot in 2012 and Chuck. E. Cheese took on a new look with electric guitar and jeans.
Consequently, in 2014, CEC Entertainment was acquired by Apollo Global Management, which is a private equity firm, in an effort to make its 577 locations profitable.
The company then started adding new items to the menu and even alcohol to appeal to the adult audience as well. However, the sales did not go up, and between 2012 and 2019, over 30 Chuck E Cheese locations were shut down.
And unfortunately, the downfall didn’t end there.
Is Chuck E. Cheese Closing Stores?
Yes, Chuck E. Cheese is all set to close 45 locations across the United States (see full list below).
This is not the first time Chuck E. Cheese is closing stores. Because of its continuous poor performance, the company shut down over 30 locations even before the pandemic.
After the pandemic, the situation got so worse that it was forced to shut down 45 more locations.
As of 2023, there are only approximately 467 Chuck E. Cheese locations left as compared to the 600+ locations it had before.
Why Is Chuck E. Cheese Closing Stores?
As described above, Chuck E. Cheese was been struggling financially ever since 2012. However, the Coronavirus pandemic turned out to be the worst blow for the entertainment chain.
The social distancing restrictions discouraged parents from bringing their kids to Chuck E. Cheese, which led the company to a debt of an estimated $200 million.
In an attempt to reposition itself, Chuck. E. Cheese filed for bankruptcy Chapter 11 in 2020.
The amount of debt the company had was high enough to close down all Chuck E. Cheese franchises. Luckily, it was able to secure 200 million dollars in loans to restructure and refinance its locations.
List Of Chuck E. Cheese Closing Stores 2023
Here’s a full list of 45 Chuck E. Cheese and Peter Piper Pizza locations that CEC Entertainment is planning to cease down:
- Diamond Bar, CA
- San Bernardino, CA
- Ladera Heights, CA
- El Monte, CA
- Long Beach, CA
- Grand Junction, CO
- Ft. Collins, CO
- Green Acres, FL
- Miami, FL
- Miami Gardens, FL
- North Lauderdale, FL
- Macon, GA
- Columbus-Macsway, OH
- Mansfield, OH
- Lima, OH
- Vernon Hills, IL
- Chicago-Matteson, IL
- Sioux City, IA
- Gaithersburg, MD
- Rochester, MN
- Danvers, MA
- Natick, MA
- Leominster, MA
- Springfield, MA
- Muskegon, MI
- Columbia, MO
- Las Vegas McCarran, NV
- Las Vegas-Sahara, NV
- Lincoln, NE
- New Hartford, NY
- Harlem, NY
- Jacksonville, NC
- Alb-Juan Tabo, NM
- OKC-Del City, OK
- Moore, OK
- OKC-Westgate, OK
- Charleston, SC
- Rapid City, SD
- Lancaster, PA
- Johnstown, PA
- Mesquite, TX
- Allen, TX
- Layton, UT
- Fredericksburg, VA
- Appleton, WI
Is Chuck E. Cheese Going Out Of Business 2023?
Since Chuck E. Cheese has filed for bankruptcy Chapter 11 and is also closing down 45 new locations, you might be wondering- Is Chuck E. Cheese going out of business?
Well, no, Chuck E. Cheese is not going out of business as of now. Because of the continuous losses, the company has raised 200 million dollars in loans and will use this money to restructure and revamp itself.
The company is also trying to adapt to the changing times and has introduced e-passes and tickets, a new app, and has even listed itself on DoorDash.
Will Chuck E. Cheese Go Out Of Business In the Future?
It is hard to tell if Chuck E. Cheese will go out of business in the future.
However, considering the constantly declining revenue, recent bankruptcy filing, and customers’ losing interest in the concept, Chuck E. Cheese might break down in the future.
Having said that, if Chuck E. Cheese manages to get its traction back and get its customers interested in the company again by introducing something exceptional, then the tables might turn around.
Is Chuck E. Cheese going out of business? – has to be one of the most searched topics on the internet. And why not? It has been serving and entertaining people for the last 40+ years.
Sadly, people are losing interest in Chuck E. Cheese’s old concept, and now is definitely a tough time for the company.
Chuck E. Cheese is deep down in debt, but the money they have raised will be utilized to restructure the company. If they do this right, then the company might be saved.
Where is Chuck E. Cheese headquartered?
CEC Entertainment, Inc. has headquarters in Irvin, Tx., and it franchises and operates a chain of Chuck E. Cheese outlets across the United States and Canada.
What is the real name of Chuck E. Cheese?
Chuck E. Cheese’s real name is “Charles Entertainment Cheese.”
Who owns Chuck E. Cheese?
In the year 2014, CEC Entertainment was acquired by Apollo Global Management for about $950 million or $54 per share.