Another One: California Pizza Kitchen Files For Bankruptcy After Loss Of Business From COVID-19

Business closures–specifically in the restaurant industry–continue to skyrocket as the coronavirus pandemic continues on throughout the United States.

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Source: Mitch Diamond / Getty

Business closures–specifically in the restaurant industry–continue to skyrocket as the coronavirus pandemic continues on throughout the United States.

According to reports from CNN Business, California Pizza Kitchen filed for Chapter 11 bankruptcy on Thursday. Unsurprisingly, the filing is due to the impact of COVID-19 closures on the pizza chain’s business, largely because the lingering ban on indoor dining across the country has prevented CPK from making money. On-premise service accounts for 80 percent of the restaurant’s sales.

“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.

California Pizza Kitchen says that by filing, they will “reduce its long-term debt load, and quickly emerge from bankruptcy as a much stronger company.” The pizza chain has around $13 million cash on hand with nearly $47 million secured in new financing, with their financial limitations preventing them from paying rent on a majority of their locations over the last few months.

Sadly, this news really shouldn’t come as a surprise. NPC International–a franchisee for over 1,200 Pizza Hut locations in the United States–filed for bankruptcy earlier this month, explaining the move was necessitated by prolonged restaurant shutdowns due to COVID-19, just like California Pizza Kitchen,

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