Retailer GNC Holdings and the parent company of Chuck E. Cheese have become the latest in a string of high-profile companies to seek bankruptcy protection.
According to the Wall Street Journal, CEC Entertainment filed for Chapter 11 bankruptcy this week after widespread closures of Chuck E. Cheese venues because of the pandemic.
The company, which is owned by private equity firm Apollo Global Management, is reportedly planning to carve out a restructuring plan with its financial backers and landlords, with a long-term focus on reopening.
GNC Holdings, on the other hand, is looking to close its health and nutrition stores and sell itself, Bloomberg reports.
While the bankruptcy process is underway, the company is allowed to keep operating as it pursues two options: restructuring its balance sheet or organizing a sale.
The company has secured $130 million from lenders to support the proposed restructuring.
A court-supervised plan to market GNC for sale will reportedly start with a bidding price of $760 million.
[WSJ, Bloomberg] — Sylvia Varnham O’Regan
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