California Pizza Kitchen has filed for Chapter 11 bankruptcy protection, as the chain has been unable to surmount the challenges posed by a steep drop in sit-down dining due to the coronavirus pandemic.
The Los Angeles-based restaurant chain said it has entered into a restructuring agreement with lenders that will allow the company to close unprofitable locations, reduce its long-term debt load, and “quickly emerge from bankruptcy as a much stronger company.”
The agreement includes $46.8 million in debtor-in-possession financing, which will allow California Pizza Kitchen restaurants to maintain operations, as well as continue payments to vendors, employees and other ongoing commitments during the bankruptcy process.
The company said it aims to complete the Chapter 11 process in under three months.
