Growth Club
1851 Growth Club
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California Pizza Kitchen Files for Bankruptcy
At least some of the franchise’s locations will remain open as the business undergoes financial restructuring.
To the list of restaurant franchises filing for bankruptcy since the arrival of the coronavirus pandemic — a list that includes iconic brands like Chuck E. Cheese and Le Pain Quotidien — add California Pizza Kitchen.
On Thursday, the LA-based full-service franchise announced it had officially filed for Chapter 11 bankruptcy, allowing the brand to undergo a financial restructuring that may include turning over leadership to lenders and slashing debt.
As EATER Los Angeles points out, the news does not mean that California Pizza Kitchen will be closing all of its 250 locations, but Chapter 11 is widely considered the last-ditch effort for a struggling business, and the brand is likely to close a number of underperforming units as a result of the financial restructuring.
“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,” said CEO Jim Hyatt in a statement. “Throughout this process we will continue to deliver the same innovative, California-inspired cuisine that we have been serving for over 35 years.”
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