The 35-year-old pizza chain filed for Chapter 11 Thursday, explaining that the method will assist it “cut back its long-term debt load, and rapidly emerge from chapter as a a lot stronger firm.” It warned that it’s going to shut unprofitable places, however did not say what number of of its 200 international eating places will likely be affected. “The unprecedented influence of Covid-19 on our operations definitely created extra challenges, however this settlement from our lenders demonstrates their dedication to CPK’s viability as an ongoing enterprise,” CEO Jim Hyatt mentioned in a launch. CPK secured practically $47 million in new financing to make sure operations proceed usually. It has round $13 million cash readily available and hasn’t paid hire for the previous a number of months on a majority of its places. The momentary closure of indoor eating has additionally been brutal for the corporate, as a result of on-premise eating makes up 80% of its gross sales, the corporate mentioned in a submitting. Revenues are at present down 40% in comparison with the identical time a yr in the past, it mentioned. Eating places, specifically informal chains like CPK, have been struggling in latest few months. The closure of in-person eating in some states and the tough economics of utilizing third-party apps like Uber Eats or DoorDash — which improve eating places’ prices and encourage diners to eat at residence — is a shedding proposition for a lot of. In latest months, Chuck E. Cheese’s dad or mum firm, Italian chain Vapiano, Le Ache Quotidien’s US unit and FoodFirst International Eating places, which owns Bravo and Brio, have all filed for chapter. Even giant franchisees, like NPC Worldwide which operates hundreds of Pizza Hut and Wendy’s places, are at present navigating the Chapter 11 course of.