FLORIDA — 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 Florida are at risk of closing hasn't yet been released by the chain.
There are 14 California Pizza Kitchen locations in Florida:
BOCA RATON #261: 6000 Glades Rd., Ste. 1230, Boca Raton
COCONUT POINT #257: 23181 Village Shops Way, Ste. 113, Estero
FT. LAUDERDALE #54: 2301 N. Federal Hwy., Ft. Lauderdale
INTERNATIONAL PLAZA #157: 2223 N.W. Shore Blvd., Spc. 189, Tampa
JACKSONVILLE #299: 4712 River City Dr., Ste. 105, Jacksonville
MILLENIA MALL #177: 4200 Conroy Rd., Spc. 1590, Orlando
MIRACLE MILE #231: 300 Miracle Mile, Coral Gables
NAPLES #48: 5555 Tamiami Trl N., Spc. G-16, Naples
PALM BEACH GARDENS #62: 3101 PGA Blvd., L-21, Palm Beach Gardens
PEMBROKE LAKES MALL #194: 11401 Pines Blvd., Ste. 100, Pembroke Pines
SARASOTA #321: 192 Cattleman Drive, Unit 1, Sarasota
SAWGRASS MILLS #310: 2610 Sawgrass Mills Cir., Ste. 1429B, Sunrise
WATERFORD LAKES #202: 695 N. Alafaya Trail, Orlando
WELLINGTON GREEN #143: 10300 Forest Hill Blvd., Ste. 197, Wellington
"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.
In early June, JCPenney said it will close 154 locations nationwide, including nine stores in Florida.
Many other national retailers are struggling, too. In February, Macy's said it plans to close 125 stores over the next three years, representing a fifth of the retail giant's locations, according to a report. So far it's unknown which locations will be shuttered in this latest round of closings, but it could impact some of the 48 Macy's stores in Florida.
Chains that are shuttering Florida stores include Pier 1 Imports, Bed Bath & Beyond, Papyrus, Gap, Motherhood Maternity, Dressbarn and more.
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.
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