California Pizza Kitchen has become the latest chain to file for Chapter 11 bankruptcy as a result of the "unprecedented impact" of theCOVID-19pandemic, the company announced Thursday.
The California-based company, which operates over 200 restaurants in eight countries and U.S. territories, entered into a "restructuring support agreement" with creditors in order to lower the company's debt by converting most of it into stock.
As a result of the agreement, the company says it will close locations that are unprofitable, reduce its long-term debt load, and emerge from bankruptcy "as a much stronger company."
"The unprecedented impact of COVID-19 on our operations certainly created additional challenges, but this from our lenders demonstrates their commitment to CPK's [Californa Pizza Kitchen] viability as an ongoing business," Californa Pizza Kitchen CEO Jim Hyatt said.
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