Update June 26: Sioux Falls is not on the company’s list of 34 locations that will be shut down. Rapid City’s arcade will close. 

June 25, 2020

The parent company of Chuck E. Cheese has filed for Chapter 11 bankruptcy, calling this the most challenging time in its history.

The restaurant and arcade chain has reopened 266 company-operated locations and plans to continue reopening them as local guidelines allow, it said. The Sioux Falls location reopened its seating and arcade areas last month after shifting to a to-go only model during the beginning of the COVID-19 pandemic.

Recently, the chain permanently closed its stores in Sioux City and Lincoln, Neb.

Parent company CEC Entertainment said in a statement it will use the time for “critical conversations” with its landlords “to achieve a comprehensive balance sheet restructuring that supports its reopening and longer-term strategic plans.

“The Chapter 11 process will allow us to strengthen our financial structure as we recover from what has undoubtedly been the most challenging event in our company’s history and get back to the business of delivering memories, entertainment and pizzas for another 40 years and beyond,” CEO David McKillips said.

“I am incredibly proud of what the CEC team has achieved over the past year as we launched the All You Can Play value gaming platform, expanded our remodel program and found new ways to engage with families while our venues were closed. I’m confident in the strength of our team and our world-class brands and look forward to more fully implementing our strategic plan as we put these financial challenges behind us.”