This Beloved Pizza Chain Was Just Saved From Bankruptcy
Because the COVID-19 pandemic is far from over, many restaurants still face an uncertain future. While some are currently shutting their doors—either voluntarily or because of government orders—others like California Pizza Kitchen are starting to make a comeback following an unprecedented year.
CPK just announced the completion of a debt-for-equity transaction and the elimination of $220 million of debt only three months after filing for Chapter 11 bankruptcy in July. With its financial restructuring completed, the company is turning its focus to investing in its digital presence and marketing, expanding its global franchise footprint, continuing to update its menu with healthy pies (like the new BBQ Chicken Pizza), and building upon its off-premise success during the pandemic. The chain also announced that it would not close any additional restaurants.
"We are excited to embark on this next chapter for CPK and build on our current business momentum," CEO Jim Hyatt said in a statement. "We are a stronger and healthier company as a result of the restructuring, and we look forward to delivering more of our innovative, California-inspired cuisine to our loyal CPK guest community."
The year has been quite the roller coaster for the fast-casual pizza chain. Sales fell a whopping 77% in the spring before the bankruptcy declaration. An auction to sell the company's assets was canceled in early October because there were no qualified bidders. The financial restructuring followed.
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