California Pizza Kitchen said Thursday that it has filed for bankruptcy, as the restaurant chain looks to close unprofitable locations and reduce its long-term debt load, and emerge from bankruptcy in under three months. The company said it has entered into a restructuring support agreement with lenders to equitize the vast majority of its long-term debt. The agreement includes contemplating $46.8 million in debtor-in-possession financing, which will allow the company's restaurants to continue operating, and for the continued payments to vendors and employees. "The unprecedented impact of COVID-19 on our operations certainly created additional challenges, but this agreement from our lenders demonstrates their commitment to CPK's viability as an ongoing business," said Chief Executive Jim Hyatt. The company joins a list of companies that have gone bankrupt amid the pandemic, including Denbury Resources Inc. (DNR), J.C. Penney Co. Inc. (JCPNQ), Brooks Brothers, Ann Taylor and Loft parent Ascena Retail Group Inc. (ASNA) and Hertz Global Holdings Inc. (HTZ).
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 30, 2020 09:18 ET (13:18 GMT)
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