Chuck E. Cheese: Is The Fun Ending?

Chuck E. Cheese, the entertainment-and-pizza venue geared towards kids, has been facing financial troubles and has closed several locations across the United States. The company filed for Chapter 11 bankruptcy protection in 2020, citing financial strain due to the COVID-19 pandemic. While CEC Entertainment, the parent company of Chuck E. Cheese, has reopened some locations, others have permanently closed, leaving customers concerned about the fate of their local Chuck E. Cheese.

Chuck E. Cheese's financial struggles

The pandemic hit the company hard, causing it to lose more than 90% of its revenue despite efforts to increase food delivery and takeout services. The company fell behind on rent payments at hundreds of locations and struggled with substantial debt, having been taken private by Apollo Global Management in 2014 through a leveraged buyout.

In 2020, the Wall Street Journal reported that the company was $1 billion in debt. As a result of these financial difficulties, Chuck E. Cheese has had to make the difficult decision to close several locations across the United States. In 2024, it was reported that around 10 locations had closed that year, with a few more left to close. The company spokesperson attributed these closures to lease expiration terms and a re-evaluation of their real estate and development strategies.

The COVID-19 pandemic has not been the only challenge for Chuck E. Cheese in recent years. The rise of e-commerce companies such as Amazon and Walmart has contributed to a decline in revenue and popularity for brick-and-mortar establishments like Chuck E. Cheese. Additionally, the company has had to compete with other entertainment options for children, with some customers citing safety concerns and a preference for alternative venues for their kids' entertainment.

Despite these financial struggles, Chuck E. Cheese has opened new locations in the last few years, and the company hopes to use the Chapter 11 process to shed debt and emerge as a more sustainable operation.

COVID-19 impact on the company

The COVID-19 pandemic has had a significant impact on Chuck E. Cheese and its parent company, CEC Entertainment. With venues temporarily closed due to the pandemic, the company lost more than 90% of its revenue, despite efforts to increase food delivery and takeout services. As a result, CEC Entertainment filed for Chapter 11 bankruptcy protection in 2020, citing the financial strain of prolonged venue closures.

CEC Entertainment found itself in a challenging financial situation due to the pandemic. The company struggled to pay rent at hundreds of locations and accumulated substantial debt. In a court filing, CEC Chief Financial Officer James Howell stated that "in ordinary times, the company would be financially sound." The pandemic's impact on the company's financial health led to the bankruptcy filing, as CEC sought protection from creditors and worked to restructure its balance sheet.

The pandemic's effect on CEC Entertainment was twofold. Firstly, the closure of venues meant a significant loss of revenue, as the company relied heavily on in-person dining and entertainment experiences. Secondly, the pandemic likely exacerbated existing financial pressures, such as the substantial debt incurred from the leveraged buyout by Apollo Global Management in 2014.

In response to the pandemic's impact, CEC Entertainment took several actions. The company reopened some locations for carry-out and arcade services, and it engaged in discussions with financial stakeholders and landlords to develop a long-term strategic plan. David McKillips, CEC Entertainment CEO, expressed optimism about the company's future, stating that the Chapter 11 process would allow them to "strengthen [their] financial structure" and continue delivering memories, entertainment, and pizzas.

Overall, the COVID-19 pandemic had a profound impact on Chuck E. Cheese and its parent company, CEC Entertainment. The company faced significant financial challenges, leading to bankruptcy filings and venue closures. However, CEC Entertainment remained committed to its long-term strategic plans and hoped to emerge from the pandemic with a stronger financial structure.

Lease expirations

Lease-related issues have also arisen due to the financial strain caused by COVID-19 closures. In its Chapter 11 bankruptcy filing, CEC Entertainment, the parent company of Chuck E. Cheese, requested permission to reject several leases across multiple states. Specifically, the company listed around 45 leases it intended to reject, including venues in California, Florida, Massachusetts, Ohio, and Oklahoma. These lease rejections were part of the company's efforts to restructure its balance sheet and alleviate financial pressures.

The Gaithersburg location in Maryland, which closed in 2020 after more than 30 years of operation, was another casualty of lease-related issues. While the exact reason for this closure was not stated, it occurred amidst the company's financial struggles and Chapter 11 bankruptcy filing.

Parent company CEC Entertainment's bankruptcy

In June 2020, CEC Entertainment, the parent company of Chuck E. Cheese, filed for Chapter 11 bankruptcy protection. The company, which also owns Peter Piper Pizza and Pasqually's Pizza & Wings, had to temporarily suspend operations of its brands during the COVID-19 pandemic. Despite cutting expenses, seeking rent concessions, and ramping up its pizza delivery business, CEC Entertainment was still millions of dollars in debt.

CEC Entertainment emerged from bankruptcy in December 2020, and Chuck E. Cheese has been on the road to recovery since then. The company spent more than $300 million to entertain a new generation of children and their parents. The company's CEO, Dave McKillips, a former Six Flags executive, joined in January 2020, just before the pandemic temporarily shuttered all locations.

Under McKillips, CEC Entertainment has made significant changes to the Chuck E. Cheese brand, including removing its famous animatronics in 2024, introducing trampolines, revamping its menu, and launching a subscription program. The company has also spent $230 million renovating its stores, and as of 2025, it is no longer in debt.

CEC Entertainment's annual revenue grew from $912 million in 2019 to roughly $1.2 billion in 2023, according to Reuters. However, the number of Chuck E. Cheese locations in the US has decreased from 537 in 2019 to 470 in 2025. The company has been closing some locations, with around 10 closed in 2024, but it has also been opening new ones, with 10 new locations opened in the last year, as well as additional locations in other countries.

List of store closures

Chuck E. Cheese's parent company, CEC Entertainment, filed for Chapter 11 bankruptcy in 2020, with a reported debt of $1 billion. The company cited the financial strain of the COVID-19 pandemic as the reason for its bankruptcy. As a result, CEC Entertainment planned to close approximately 34 locations across the United States, with a focus on low-income sites.

• Arlington, TX
• Fargo, ND
• Bridgewater, NJ
• Monroeville, PA
• Sioux Falls, SD
• Omaha, NE
• Joplin, MO
• Hagerstown, MD
• Davenport, IA
• Gaithersburg, MD
• Oklahoma City-Del City, OK
• Oklahoma City-Westgate, OK
• Five locations in California
• Four locations in Florida
• Four locations in Massachusetts
• Three locations in Ohio

Some sources also mention the permanent closure of the Berks County location in Spring Township, PA, in September 2024.

It is important to note that the list of store closures may not be exhaustive, and there may be additional locations that have closed or will close in the future.

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