July 30, 2020
To Our CPK Family,
I am writing to you to communicate important steps we are taking to position California Pizza Kitchen for future growth and success.
Earlier today, we announced that CPK has entered into a restructuring support agreement with our senior lenders that will equitize the vast majority of our long term debt. In order to implement this agreement, we filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The restructuring agreement includes a commitment for $46.8 million in new financing which will enable ongoing operation of CPK restaurants. This proactive filing will allow us the ability to reduce our long term debt load and emerge as a much stronger company. We anticipate a short stay in Chapter 11 and expect to progress on an expedited timeline - our goal is to complete the Chapter 11 process in under three months.
I want to emphasize a few key points about today’s news:
- CPK is open for business - take out, delivery, third party and select dining room and patio locations - and we will continue to operate in ordinary course throughout the restructuring process.
- Your gift cards and CPK Rewards® points will continue to be valid and retain their value.
- Prior to the filing, CPK closed some restaurants in the United States due to the impact of the COVID-19 pandemic and lease related challenges with our landlords. We do not have plans to close any additional restaurants at this time.
We appreciate your support and look forward to delivering the same innovative, California-inspired cuisine we’ve been serving for over 35 years at a restaurant near you.