Due to the current pandemic, California Pizza Kitchen is filling for bankruptcy.
In a press release, the company states, “CPK has filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas today. This pre-negotiated filing represents a deal with CPK’s lenders and will allow the California-based restaurant the ability to close unprofitable locations, reduce its long-term debt load, and quickly emerge from bankruptcy as a much stronger company.”
They do add, though, that they will continue to operate throughout the company’s restructuring process.
Jim Hyatt, CEO of CPK, talks about the decision, saying, “Today’s announcement is a step towards a stronger future for California Pizza Kitchen. 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. Throughout this process we will continue to deliver the same innovative, California-inspired cuisine that we have been serving for over 35 years.”
On the website, Hyatt adds that before the filing, CPK already closed some restaurants in the U.S. due to the coronavirus pandemic. The brand does not have plans to close any additional restaurants.