California Pizza Kitchen Files for Bankruptcy Because of Coronavirus
published 30.07.2020 15:05
Based in Playa Vista, CPK is known for its casual locations — particularly at airports, high-traffic areas like the Hollywood and Highland shopping complex, and elsewhere — and quirky pizza toppings, thanks to founder Ed LaDou, who was the first pizza cook at Wolfgang Puck’s iconic Spago.
California Pizza Kitchen is far from the first national chain to experience a troubling downturn during these past six months.
Per Nation’s Restaurant News: The company has just $13.5 million of cash on hand and has approximately four months of unpaid rent obligations at the majority of its locations, including numerous default notices from its landlords and court actions brought by CPK’s landlords to obtain this unpaid rent,” CEO Jim Hyatt said in the court documents.
While today’s announcement, made at Wall Street Journal, Nation’s Restaurant News, and elsewhere, does not mean that the company is closing its more than 250 locations permanently, though it does put the popular chain in dire straights.
Los Angeles-based casual restaurant chain California Pizza Kitchen, better known simply as CPK, is now officially in chapter 11 bankruptcy as a result of the ongoing economic downturn fueled by the global coronavirus pandemic.