VIRGINIA — California Pizza Kitchen said the company is filing for bankruptcy, one of the most recent businesses hit hard by the coronavirus pandemic that has severely restricted operations in the restaurant industry.
The company is filing for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas, CEO Jim Hyatt said in a news release on Thursday.
"The restructuring agreement includes a commitment for $46.8 million in new financing which will enable ongoing operation of CPK restaurants," Hyatt said. "This proactive filing will allow us the ability to reduce our long term debt load and emerge as a much stronger company."
The company plans to keep locations open and operating, although it has struggled to pay rent at some locations. Whether locations in Virginia are at risk of closing hasn't yet been released by the chain.
There are six California Pizza Kitchen locations in Virginia:
FAIRFAX CORNER #195: 4200 Fairfax Corner W. Ave., Bldg. H, Fairfax
MACARTHUR CENTER #233: 300 Monticello Ave., Ste. 149, Norfolk
PENTAGON CENTER #91: 1201 S. Hayes St., Ste. F, Arlington
SHORT PUMP #193: 11800 W. Broad St., Ste. 1104, Richmond
TYSONS CORNER #11: 7939 Tysons Corner Ctr, Ste. L, McLean
VIRGINIA BEACH #207: 200 Central Park Ave. Virginia Beach
"CPK is open for business - take out, delivery, third party and select dining room and patio locations - and we will continue to operate in ordinary course throughout the restructuring process," Hyatt said.
Gift cards and CPK Rewards points are still valid, he added.
Before filing bankruptcy CPK had closed some restaurant locations in the U.S. following the impact of the COVID-19 pandemic and "lease related challenges with our landlords," Hyatt said.
"We do not have plans to close any additional restaurants at this time," Hyatt said. "We appreciate your support and look forward to delivering the same innovative, California-inspired cuisine we've been serving for over 35 years at a restaurant near you."
The company is headquartered in Playa Vista, California. Its first restaurant opened in Beverly Hills in 1985.
Even before boutiques and malls were shutdown by the coronavirus outbreak, traditional brick-and-mortar establishments saw a nosedive in revenue and popularity with the emergence of e-commerce companies such as Amazon and Walmart.
Other chains that are closing some or all of their Maryland stores include Pier 1 Imports, Bed Bath & Beyond, Sears, Kmart, Motherhood Maternity, Dressbarn and more.
In May, the parent company of the preppy clothing retailer J.Crew said it filed for Chapter 11 bankruptcy protection amid flagging sales due to the coronavirus pandemic. The company has 10 stores in Virginia and the District of Columbia.
The same month the iconic but struggling retailer J.C. Penney Co. prepared to file for bankruptcy; the chain has 22 Virginia stores. Neiman Marcus said in May it was turning its business over to creditors.
The news is a continuation of the recent climate for brick-and-mortar stores across America. A record 9,300-plus store closings were announced in 2019, and that number could be even higher in 2020, according to a report by Business Insider.
Other chains that closed some of their Virginia stores include the Gap, Pier 1 Imports, Bed Bath & Beyond, Sears, Kmart, Motherhood Maternity, Dressbarn and more.
Two Gap clothing stores in Virginia closed in January 2020. The store closure was part of a plan announced in February 2019 to close 230 stores across the country. The two stores that closed were located at 1534 Rio Road E. in Charlottesville and 21100 Dulles Town Circle in Dulles, the company said.
In January, Pier 1 said it would likely close half of its stores to "better align its business with the current operating environment." A dozen Virginia stores, including one each in Manassas, Falls Church, Arlington and Alexandria, were removed from the chain's website and were slated for closure. Patch has posted the full list of the 12 Pier 1 stores expected to close.
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