California Pizza Kitchen files for bankruptcy

California Pizza Kitchen is the latest fast casual chain to...

Posted: Jul 30, 2020 12:24 PM
Updated: Jul 30, 2020 12:45 PM

California Pizza Kitchen is the latest fast casual chain to file for bankruptcy as the pandemic and its debt burden hampers its operations.

The 35-year-old pizza chain filed for Chapter 11 Thursday, explaining that the process will help it 'reduce its long-term debt load, and quickly emerge from bankruptcy as a much stronger company.' It warned that it will close unprofitable locations, but didn't say how many of its 200 global restaurants will be affected.

'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,' CEO Jim Hyatt said in a release.

CPK secured nearly $47 million in new financing to ensure operations continue normally. It has around $13 million cash on hand and hasn't paid rent for the past several months on a majority of its locations.

The temporary closure of indoor dining has also been brutal for the company, because on-premise dining makes up 80% of its sales, the company said in a filing. Revenues are currently down 40% compared to the same time a year ago, it said.

Restaurants, in particular casual chains like CPK, have been struggling in recent few months. The closure of in-person dining in some states and the rough economics of using third-party apps like Uber Eats or DoorDash -- which increase restaurants' costs and encourage diners to eat at home -- is a losing proposition for many.

In recent months, Chuck E. Cheese's parent company, Italian chain Vapiano, Le Pain Quotidien's US unit and FoodFirst Global Restaurants, which owns Bravo and Brio, have all filed for bankruptcy. Even large franchisees, like NPC International which operates thousands of Pizza Hut and Wendy's locations, are currently navigating the Chapter 11 process.

California Coronavirus Cases

Data is updated nightly.

Cases: 3563578

Reported Deaths: 51953
CountyCasesDeaths
Los Angeles119089421328
Riverside2894503767
San Bernardino2862912816
Orange2610223904
San Diego2596413271
Santa Clara1104221777
Kern102627826
Fresno952021443
Sacramento931801472
Alameda804961241
Ventura77534844
San Joaquin665691101
Contra Costa62164674
Stanislaus56024946
Tulare47784758
Monterey42138328
San Mateo38922515
San Francisco34213410
Santa Barbara31763409
Solano30024164
Merced28915397
Sonoma28063298
Imperial26888591
Kings21951218
Placer19763232
San Luis Obispo19612227
Madera15436209
Santa Cruz14588183
Marin13136197
Yolo12816185
Shasta10972174
Butte10941160
El Dorado9095100
Napa901469
Sutter884597
San Benito575959
Yuba573336
Lassen560119
Tehama508152
Nevada395274
Tuolumne394659
Mendocino379643
Amador345741
Humboldt318033
Lake315341
Glenn222023
Colusa212813
Calaveras190547
Siskiyou174014
Inyo128737
Mono12114
Del Norte9875
Plumas6536
Modoc4524
Mariposa3957
Trinity3675
Sierra990
Alpine810
Unassigned00
Chico
Clear
52° wxIcon
Hi: 70° Lo: 36°
Feels Like: 52°
Oroville
Clear
54° wxIcon
Hi: 65° Lo: 48°
Feels Like: 54°
Chico
Clear
52° wxIcon
Hi: 61° Lo: 44°
Feels Like: 52°
Red Bluff
Clear
53° wxIcon
Hi: 46° Lo: 16°
Feels Like: 53°
Red Bluff
Clear
53° wxIcon
Hi: 67° Lo: 43°
Feels Like: 53°
Chico
Clear
52° wxIcon
Hi: 72° Lo: 44°
Feels Like: 52°
After a windy Saturday and fairly breezy Sunday, the wind we've had is weakening as the month of February comes to a close. We can expect a mostly clear first morning of March, followed by more clouds and mild air by the afternoon.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events