California Pizza Kitchen Files For Chapter 11 Bankruptcy Protection

AN FRANCISCO (CBS SF/CNN) — The California Pizza Kitchen filed for Chapter 11 Bankruptcy Thursday as San Francisco Bay Area restaurants continue to struggle for survival amid COVID-19 restrictions prohibiting indoor dining.

The popular chain has 14 restaurants throughout the Bay Area. The 35-year-old pizza chain warned that it will close unprofitable locations, but didn’t say how many of its 200 global restaurants will be affected.

“The unprecedented impact of COVID-19 on our operations certainly created additional challenges, but this agreement from our lenders demonstrates their commitment to CPK’s viability as an ongoing business,” CEO Jim Hyatt said in a release.

CPK secured nearly $47 million in new financing to ensure operations continue normally. It has around $13 million cash on hand and hasn’t paid rent for the past several months on a majority of its locations.

The temporary closure of indoor dining has also been brutal for the company, because on-premise dining makes up 80% of its sales, the company said in a filing. Revenues are currently down 40% compared to the same time a year ago, it said.



https://sanfrancisco.cbslocal.com/2020/07/30/reopening-california-pizza-kitchen-files-for-chapter-11-bankrupcy-protection/?utm_campaign=snd-autopilot