HOUSTON — Another restaurant chain has filed for Chapter 11 bankruptcy protection amid the coronavirus pandemic.
According to Bloomberg, Golden Gate Capital-owned California Pizza Kitchen filed the petition in Houston on Wednesday, saying it hopes to cut its pre-bankruptcy debt by $230 million and has secured about $47 million in additional financing to continue operations. The company, which was founded in 1985 and now has 200 locations worldwide, also said it plans to shutter some unprofitable restaurants without specifying how many, CNN reported.
CEO Jim Hyatt said the chain also has faced "additional challenges" because of the pandemic, during which many restaurants temporarily closed their dining rooms to help prevent the virus from spreading, according to CNN. Compared to this period last year, revenues for the chain have plunged 40%, the outlet reported.
The chain, which has just over $13 million on hand, said many of its restaurants haven't paid rent in recent months, according to CNN and Bloomberg.
Cox Media Group
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/ABGTXIAMTLITW4YS5IEDL6X2HY.jpg)
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/EDM27C6AAFB2DOVYIZ7KKUPSNY.jpg)
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/AEYMZS5NQVGNVPXIOAY3IFAAJM.jpeg)
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/4677F2F46NHRNPB53FMNYJQTDA.jpeg)
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/cmg/G4OBHFZCCRFGTPYN2FAJ3VUGOE.jpg)