Chuck E. Cheese's Closures: Where Are They Shutting Down?

Chuck E. Cheese, the entertainment-and-pizza venue geared towards kids, has been closing locations across the US. The company filed for Chapter 11 bankruptcy protection in 2020, and has since closed around 10 locations, with a few more left to shut down. The COVID-19 pandemic and related venue closures caused significant financial strain, with the company losing more than 90% of its revenue.

Chuck E. Cheese closed its Gaithersburg location after 30 years

Chuck E. Cheese's parent company, CEC Entertainment, has been facing financial troubles, with reports of substantial debt and COVID-19-related venue closures. As a result, the company has been forced to make some difficult decisions regarding its locations across the United States. Unfortunately, this has led to the closure of the Gaithersburg location after 30 years of operation.

The Gaithersburg community was saddened by the news, as the location held many memories for families in the area. The closure was announced in June 2020, and it was reported that the company was struggling under the weight of $1 billion in debt. However, CEC Entertainment managed to avoid filing for bankruptcy at that time. The Rockville and Takoma Park locations remained open for carry-out and later reopened their arcades.

The closure of the Gaithersburg location is not an isolated incident, as CEC Entertainment has closed or planned to close several other venues across the country. In 2020, the company filed for Chapter 11 bankruptcy protection and listed around 45 leases it intended to reject, including venues in California, Florida, Massachusetts, Ohio, and Oklahoma. The list also included 11 locations that had already closed before the COVID-19 pandemic.

The company has cited lease expiration and strategic real estate evaluations as reasons for closing some locations. For example, the Berks' only Chuck E. Cheese location in Spring Township, Pennsylvania, closed on September 15, with employees offered opportunities at other venues. Additionally, a location in Davenport, Iowa, closed in April 2021 after more than 30 years of operation.

While CEC Entertainment has had to make some tough choices, it is important to note that the company is still committed to providing fun, family-friendly experiences across its remaining locations. The closures are a result of the financial strain and the need to ensure the long-term sustainability of the business.

The company filed for Chapter 11 bankruptcy protection

In June 2020, Chuck E. Cheese's parent company, CEC Entertainment, filed for Chapter 11 bankruptcy protection. This form of bankruptcy allows for the reorganization of a business, enabling it to stay operational while developing a plan to pay off creditors over time.

Chapter 11 bankruptcy is typically used by corporate entities, although it is available to individuals as well. In the case of Chuck E. Cheese, the company aimed to use this process to shed debt and emerge as a more sustainable operation. The filing was a result of financial challenges stemming from the COVID-19 pandemic, which caused the temporary closure of its venues and a loss of over 90% of its revenue.

During this period, CEC Entertainment also struggled with rent payments at hundreds of locations. Despite these challenges, the company was able to exit bankruptcy and has since invested significantly in revamping its stores and adapting to the changing entertainment preferences of children.

As part of its reorganization efforts, CEC Entertainment closed approximately 34 locations, including some that had already been permanently closed before the pandemic. The company also requested permission to continue honouring game credits, tickets, tokens, and other customer benefits.

The bankruptcy filing provided Chuck E. Cheese with an opportunity to restructure and address its financial difficulties. By filing for Chapter 11 protection, the company was able to develop a plan to pay off its creditors while remaining operational, ultimately emerging with less debt and a refreshed business strategy.

CEC Entertainment plans to close 34 locations

CEC Entertainment, the parent company of the entertainment-and-pizza venue geared toward kids, has announced plans to permanently close 34 locations that were still operational when the coronavirus pandemic began. The company filed for Chapter 11 bankruptcy protection, citing financial strain from COVID-19-related venue closures.

In a statement, CEC Entertainment said:

> The Company expects to use the time and legal protections made available through the Chapter 11 process to continue discussions with financial stakeholders, as well as critical conversations with its landlords, to achieve a comprehensive balance sheet restructuring that supports its re-opening and longer-term strategic plans.

The company has reopened 266 of its Chuck E. Cheese and Peter Piper Pizza restaurants across the country, but the Gaithersburg location has closed permanently. The fate of the ten open locations in Maryland is uncertain.

The closures are part of a broader trend of brick-and-mortar establishments experiencing a decline in revenue and popularity due to the emergence of e-commerce companies. Sears, for example, recently confirmed the closure of three stores in Maryland, and other chains closing locations in Maryland include Pier 1 Imports, Bed Bath & Beyond, Papyrus, Sears, A.C. Moore, Kmart, Motherhood Maternity, Dressbarn, and Macy's.

A full list of the 34 Chuck E. Cheese and Peter Piper Pizza leases that CEC Entertainment plans to reject is included in a court filing. This list includes 11 venues that had already permanently closed before COVID-19, and the remaining 23 locations are yet to be confirmed.

The company has requested permission to continue to honor game credits, tickets, tokens, gift cards, customer deposits, discount offers, and loyalty accounts as long as the company remains in business.

The Berks location permanently closed

Chuck E. Cheese's Berks location has permanently closed its doors, marking a sad end for families in the area who cherished the dining and entertainment spot. The closure of the Berks County location on North Meridian Boulevard in Spring Township leaves nearby sites in Springettsbury Township, York County, and Susquehanna Township, Dauphin County as the closest alternatives for locals.

The decision to close the Berks location was a challenging one for the company, which stated that it was based on lease expiration terms. This move is part of Chuck E. Cheese's ongoing evaluation of their real estate and development strategies to ensure alignment with their strategic goals. Employees at the Spring Township site were offered positions at other locations, and the company expressed its commitment to delivering fun, family-friendly experiences across their remaining venues.

The closure of the Berks location is not an isolated incident, as Chuck E. Cheese's parent company, CEC Entertainment, has faced financial struggles, filing for Chapter 11 bankruptcy protection. The pandemic dealt a heavy blow, causing the company to lose over 90% of its revenue due to venue closures. CEC Entertainment found itself in a situation where it couldn't keep up with rent payments at hundreds of locations.

CEC Entertainment owns both Chuck E. Cheese and Peter Piper Pizza chains and has a significant presence with over 700 locations globally. The company plans to permanently close about 34 locations that were open when the pandemic began, including venues in California, Florida, Massachusetts, Ohio, and Oklahoma. The list of closures also includes 11 sites that had already ceased operations before COVID-19.

The pandemic has impacted many businesses, and Chuck E. Cheese is among several notable companies forced to declare bankruptcy. Despite the challenges, Chuck E. Cheese continues to seek new opportunities to serve families and remains dedicated to creating positive, lifelong memories through fun, food, and play.

Chuck E. Cheese has 10 open locations in Maryland

Chuck E. Cheese's parent company, CEC Entertainment, filed for Chapter 11 bankruptcy in 2020, with plans to close 34 locations that were open when the coronavirus pandemic began. The company has nearly 600 locations worldwide and is the parent company of the Peter Piper Pizza brand and virtual kitchen concept Pasqually's Pizza & Wings.

Despite the bankruptcy, CEC Entertainment asserted that it would continue operations and work towards a comprehensive restructuring of its balance sheet. At the time of the bankruptcy announcement, the company had reopened 266 of its locations across the country.

In Maryland, Chuck E. Cheese had 10 open locations at the time of the bankruptcy filing:

• 2333-A Forest Dr., Annapolis
• 5 Bel Air South Pkwy. Ste. N-1447, Bel Air
• 6637 Governor Ritchie Hwy., Glen Burnie
• 17618 Valley Mall Blvd., Hagerstown
• 3241 Plaza Way, Waldorf
• 8886 Waltham Woods Rd, Parkville
• 5912 Baltimore Nt'l Pike, Catonsville
• 5270 Randolph Rd., Rockville
• 7210 Guilford Dr., Frederick
• 1127 University Blvd East, Takoma Park

However, it was reported that the Gaithersburg location in Maryland would be closing permanently.

Frequently asked questions