Music & Games

Chuck E. Cheese seeks $200M loan, approves $2.8M for management retention

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June 10, 2020

Chuck E. Cheese’s parent company, CEC Entertainment, has approached lenders for a $200 million loan, according to a report in The Wall Street Journal.

On June 1, 2020, CEC Entertainment board of directors compensation committee approved, and 28 of the company’s employees entered into, a key employee retention program to retain employees in their current roles over the near term while providing them with financial stability, according to an SEC filing. The payments are contingent upon the participants' continued employment through the retention period.

The retention period is the earlier of 12 months from the effective date of the agreements or 30 days following the effective date of a restructuring.

The retention amounts include $1.3 million for CEO David McKillips, $900,000 for J. Roger Cardinale, president, and $675,000 for James Howell, executive vice president and CFO.

The company did not respond to requests from this website for comment on bankruptcy or other financial changes.