The California-style pizza restaurant plans to restructure through chapter 11 bankruptcy proceedings.
Another restaurant chain is heading to bankruptcy court in the wake of the COVID crisis. California Pizza Kitchen, or CPK, filed for chapter 11 bankruptcy protection on July 30 in Texas. The company plans to emerge from bankruptcy by restructuring debt and closing underperforming stores. California Pizza Kitchen has more than 240 stores in North America and has kept most of its restaurants open during the pandemic.
Founded 35 years ago in Beverly Hills, California, the restaurant is known for its fresh, personal-sized pizzas made with fresh ingredients. Decorated with black and white tile floors and wicker seating, California Pizza Kitchen quickly became a popular place to grab pizza and salad. The company was bought out by Pepsi Co. in 1992, but faltered in its expansion plans. Five years later, a private equity group came in that eventually brought the original owners back to the company. In 2020, the company has 240 stores as well as a line of frozen pizzas in grocery stores.
Staying in doesn't mean you have to say goodbye to THE BEST! Drop a 💛 if you love good pizza 🍕 pic.twitter.com/WTOPDmn7aa— CPK Frozen Pizza (@CPKFrozen) June 26, 2020
In a press statement, California Pizza Kitchen CEO Jim Hyatt blamed the coronavirus crisis for the company’s most recent financial challenges.
“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. Throughout this process we will continue to deliver the same innovative, California-inspired cuisine that we have been serving for over 35 years.”
California Pizza Kitchen locations are still open for carryout, delivery, and dine-in according to location. Restaurants will still honor gift cards, and customers can still earn and redeem points through the company’s reward program.