Chuck E Cheese is working with investment bank Goldman Sachs to attract bids from private equity firms. Credit: iJeab/ shutterstock.com.

CEC Entertainment’s restaurant brand Chuck E Cheese is considering the sale of the business, Reuters has reported.

A potential deal could value Chuck E Cheese at more than $1bn, based on its peers’ valuation metrics.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The restaurant is working with investment bank Goldman Sachs to attract bids from private equity firms for stakes or the full sale of the business.

The restaurant chain is also seeking interest from peers such as Dave & Busters Entertainment.

Chuck E Cheese’s parent company CEC Entertainment said that the potential acquirers could generate revenue of $1.2bn and $195m in earnings before interest, taxes, depreciation and amortisation in 2023.

However, there is no certainty that a deal will be signed by the parties.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In June 2020, CEC Entertainment and its domestic affiliates filed for Chapter 11 bankruptcy due to the impact of the Covid-19 pandemic.

In December 2020, the company emerged from bankruptcy after ownership was transferred to its creditors who agreed to eliminate debt of $705m from its balance sheet.

The creditors included investment firms Monarch Alternative Capital and Redan Advisors.

CEC was acquired by Apollo Global Management in 2014 in a deal worth $1.3bn, including debt.

Chuck E Cheese and its franchisees currently operate 600 locations and more than 120 Peter Piper Pizza locations globally.

The restaurant also owns the delivery-only brand, Pasqually’s Pizza & Wings.