"In 2020, the COVID-19 pandemic drastically reshaped the restaurant industry. Many places had to close overnight, losing their biggest source of income from dine-in customers. Though many quickly pivoted towards a delivery-and-takeout type of operation, the rapid loss of revenue still spelled doom. One restaurant that hit a rough patch as a result of the pandemic was California Pizza Kitchen, the iconic pizza chain that popularized California-style pizza."
"At the chain's lowest financial point, it was reportedly over $400 million in debt. Deep in the red, the chain could do little else but file for bankruptcy - yet even as it did so, CPK was looking steadily ahead, refusing to give up. It filed for Chapter 11 bankruptcy, which allows the restaurant to stay open and arms the debtors with an approved plan for reorganizing the company's finances."
In 2020 the COVID-19 pandemic forced many restaurants to close dine-in service and pivot to delivery and takeout, dramatically reducing revenue. California Pizza Kitchen accrued reportedly over $400 million in debt and filed for Chapter 11 bankruptcy in July 2020. Chapter 11 enabled the chain to remain open while pursuing a reorganization plan and to exchange a large portion of debt for equity, cutting more than half of its obligations. The chain emerged from bankruptcy within months and shifted focus toward health-centered pizzas, global expansion, and business models that extend beyond dine-in customers.
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