California Pizza Kitchen Files For Bankruptcy
California Pizza Kitchen is the latest restaurant chain to declare bankruptcy. The popular American casual food chain on Thursday (Friday night in Manila) said it plans to close unprofitable locations and reduce its long-term debt load, according to the Wall Street Journal. It also said it hopes to emerge from bankrutptcy within three months.
"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 Chief Executive Jim Hyatt.
Also read: What is bankruptcy?
In a report on MarketWatch, the company said it has entered into a restructuring support agreement with lenders to equitize the vast majority of its long-term debt.
"The agreement includes contemplating $46.8 million in debtor-in-possession financing, which will allow the company's restaurants to continue operating, and for the continued payments to vendors and employees," the report added.
California Pizza Kitchen, often abbreviated to CPK, opened in Beverly Hills, California in 1985, gaining popularity for its Original BBQ Chicken Pizza. The chain currently has 250 locations in the U.S. and in 10 countries across the world. In the Philippines, CPK opened in 1998 under the Global Restaurant Concepts Inc. group. There are currently three branches of CPK in Manila (Alabang Town Center, Shangri-La Plaza, and Century City Mall).
We have reached out to the local CPK franchise for a statement and will update this story when we hear from them.
*An earlier version of this story stated that there were four branches of CPK in Manila. There are currently only three.