The California Pizza Kitchen restaurant chain said it has filed for Chapter 11 bankruptcy protection and will close unprofitable locations.
California Pizza Kitchen has more than 200 locations worldwide. Its only Louisiana restaurant is in Baton Rouge, in the Perkins Rowe mixed-use development.
The company submitted a pre-negotiated filing with a Texas bankruptcy court Thursday. In documents, California Pizza Kitchen said the coronavirus pandemic dealt a “significant blow” to the business because dining in the restaurant accounted for 78% of its sales. While California Pizza Kitchen has shifted to carry out, meal kits and delivery service, business is down 40% from the start of the pandemic.
The restructuring plan California Pizza Kitchen has submitted calls for $46.8 million in new financing, which will allow restaurants to stay open and vendors and employees to get paid. The goal is to cut company debt from $403 million to $174 million and emerge from bankruptcy in three months.