California Pizza Kitchen is the latest chain to file bankruptcy amidst the ongoing Coronavirus pandemic as the company looks to cut its debt by $230 million and find additional funding.
CPK has been struggling for a few years now due to changes in consumer behavior and had previously been looking to either sell, or restructure the business. Now with revenue 40% lower than 2019 levels the chain has been forced to close 46 locations and already took a $30 million loan back in March from its group of lenders.
CEO James Hyatt said of the bankruptcy filing that, “for many restaurants, the Covid-19 pandemic will be the greatest challenge they will ever face; for some, it may also be their last.”
The Beverly Hills-based company currently operates 200 restaurants around the country with several in the Bay Area.