Ending Soon! Save 33% on All Access

The Rise and Fall of Chuck E. Cheese, Which Just Filed for Bankruptcy The chain's parent company, CEC Entertainment, filed for Chapter 11 on Thursday, citing pandemic-related reasons.

By Kate Taylor

This story originally appeared on Business Insider

Getty Images via BI
Chuck E. Cheese is 43 years old.

Chuck E. Cheese has been through a lot over the last 43 years.

The mascot - full name Charles Entertainment Cheese - was originally created by Atari cofounder Nolan Bushnell, to serve as the cigar-chewing mascot at Pizza Time Theatre in the 1970s. Since then, the chain that took the mascot's name has been restructured and sold numerous times in attempts to keep up with the trends.

In April, Business Insider's Casey Sullivan and Alex Morrell reported that parent company CEC Entertainment was struggling under a heavy debt load. Lenders had tapped restructuring lawyers, according to people familiar with the situation. And Thursday, the dinnertainment chain's parent company, CEC Entertainment, filed for Chapter 11 bankruptcy protection after weeks of speculation over the chain's impending demise.

Change is nothing new for Chuck E. Cheese. Read on to see how the chain evolved, as Chuck E. Cheese transformed from an animatronic rat from New Jersey to a rock star mouse performing live shows on YouTube.

Related: GNC Is Closing 248 Stores After Filing for Bankruptcy. Here's the Full List.

Getty Images/Bettmann
Silicon Valley technology pioneers Nolan Bushnell (right) and Steve Wozniak

Atari cofounder Nolan Bushnell founded Pizza Time Theatre in 1977.

Source: Fast Company
Ted Thai/The LIFE Picture Collection via Getty Image
Nolan Bushnell in one of his Pizza Time Theater Restaurants.

The star of the restaurant was Chuck E. Cheese, a cigar-smoking rat with a Jersey accent.

Source: Fast Company
Ted Thai/The LIFE Picture Collection via Getty Images
Giant novelty robot The King posing with Nolan Bushnell, founder/owner of Pizza Time Theater

"I always felt that was something that was lacking in restaurants," Bushnell told Fast Company. "I wanted to add a dimension of fun to the act of having a meal."

Source: Fast Company
John Mahler/Toronto Star via Getty Images
Adam Roberts; the man inside; dresses up as Chuck E. Cheese; rodent restaurateur. And he loves his job. The little ones kiss my nose and say: 'I love you Chuckee.' They pass me notes and drawings; he says.

Originally, Chuck E. Cheese made abrasive and sometimes sexual jokes, aimed at adult customers. But the chain transitioned to a more kid-friendly approach relatively quickly in its early years.

Mark Sullivan/WireImage
Chuck E. Cheese at the Annual Hollywood Christmas Parade in 2003.

In the '80s, the pizza chain went public, followed by various restructuring efforts as sales slumped. By 1992, all locations of the pizza chain that had grown out of the Pizza Time Theatre concept were rebranded as Chuck E. Cheese's.

Source: Nation's Restaurant News
Bryan Chan/Getty Images
Ed Porter, Area Director for Chuck E. Cheese, chats with a family having a birthday party.

Chuck E. Cheese's continued to evolve and grow, reaching 300 locations in 2000.

Source: Show Biz Pizza
Mark Schiefelbein/Getty Images
Chuck E. Cheese's in Springfield, Mo., as seen Sunday, January 6, 2008.

The chain was famous for its arcade games, prize tokens and pizza, as well as performances by an animatronic Chuck E. Cheese and crew.

Mike Mozart of TheToyChannel and JeepersMedia on YouTube

However, in 2012, Chuck E. Cheese's struggled to boost sales. After decades of Chuck E. Cheese being portrayed as a rat, the company remade the mascot as a "rock star" mouse.

Photo by Phillip Faraone/FilmMagic
Pasqually The Chef, Chuck E. Cheese, and Helen Henny attend the 84th Annual Hollywood Christmas Parade on November 29, 2015 in Hollywood, California.

According to the company, the mouse's full name is Charles Entertainment Cheese, an orphan who celebrates others' birthdays to make up for his own sad childhood.

Source: Insider
YouTube

The makeover failed to bring in customers, and Chuck E. Cheese Entertainment was acquired by private-equity firm Apollo Global Management in 2014 for nearly $1 billion.

Source: The Wall Street Journal
Darren Abate/AP Images for Chuck E. Cheese's
CEC Entertainment CEO Tom Leverton, right, speaks to attendees with Chuck E. Cheese during the Chuck E. Cheese Grand Reopening on Wednesday, Aug. 9, 2017, in San Antonio.

The last few years have seen plenty of change at Chuck E. Cheese. The chain retired its tokens in 2016 and the animatronics in 2017. The chain also changed its name slightly, dropping the possessive to become Chuck E. Cheese in 2017.

Source: Business Insider
Darren Abate/AP Images for Chuck E. Cheese's
Chuck E. Cheese's debuts its fresh new look on Wednesday, Aug. 9, 2017, in San Antonio.

Since 2017, the chain has been working to revamp locations with new designs, dynamic pricing and better birthday packages.

Susan Montgomery/Shutterstock

In April 2019, CEC Entertainment announced that the company would return to the New York Stock Exchange through a merger. But, the deal fell apart.

Source: Business Insider
Chuck E. Cheese/YouTube

The coronavirus pandemic hit the chain hard, with sales sinking 21 percent in the first quarter. Chuck E. Cheese has attempted to keep fans engaged with pizza delivery and "live performances" from the mascot.

Business Insider's Casey Sullivan and Alex Morrell reported this week that the chain has already cut hours and staffing, furloughed most of its hourly employees and some 65 percent of support-center staff and deferred rental payments on its company-operated venues.
Photo by Bruce Bennett/Getty Images
An image of the sign for a Chuck E Cheese store as photographed on March 18, 2020 in Hicksville, New York.

CEC Entertainment is struggling under a heavy debt load and lenders have organized and tapped restructuring lawyers, according to three people familiar with the matter.

Various representatives were not available or declined to comment on Sullivan and Morrell's reporting.

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

More People Are Exploring Entrepreneurship Because of This Unexpected Reason

More new business applications were filed in 2023 than in any other year so far.

Business News

TikTok Reportedly Laid Off a 'Large Percentage' of Employees as the App's Fate in the U.S. Remains Unclear

Laid-off TikTok employees were notified Wednesday night through Thursday morning.

Business News

Four Seasons Orlando Responds to Viral TikTok: 'There's Something Here For All Ages'

The video has amassed over 45.4 million views on TikTok.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Personal Finance

This Investment Bundle Includes a Trading Course and Stock Screener Tool for $150

Approach the stock market with an increased understanding.