+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Chuck E. Cheese wants to destroy 7 billion prize tickets worth $9 million in prizes as the company claws its way out of bankruptcy

Sep 16, 2020, 21:50 IST
Business Insider
Chuck E. Cheese's approximately 7 billion tickets could be redeemed for $9 million in prizes if they are not destroyed.Bruce Bennett/Getty Images
  • Chuck E. Cheese wants to destroy about 7 billion paper prize tickets worth $9 million in prizes.
  • In a Monday emergency motion, Chuck E. Cheese parent company CEC Entertainment requested permission for its vendors to destroy the tickets, which could fill "approximately 65 40-foot cargo shipping containers."
  • Destroying the tickets will cost CEC Entertainment about $2.3 million dollars, but will still be $1 million cheaper than circulating them.
  • Chuck E. Cheese is also rolling out e-tickets as part of a pivot towards a more touchless customer experience.
Advertisement

In its efforts to stay afloat, Chuck E. Cheese is ejecting ballast in the form of its iconic paper prize tickets.

CEC Entertainment, the parent company of the iconic children's dinnertainment chain, wants to spend $2.28 million to shred about 7 billion prize tickets, Bloomberg Law first reported on Tuesday.

Destroying the prize tickets rather than circulating them would also allow Chuck E. Cheese to save about $1 million. And if the tickets were simply abandoned instead of destroyed, they could be exchanged for about $9 million in prizes — a major financial blow to the already struggling company.

The company filed an emergency motion for permission to destroy the tickets in Texas's Southern District bankruptcy court on Monday. The motion lays out a plan for paying ticket suppliers for their existing stock — which was ordered before the pandemic and remains largely unused — and the cost of destroying it.

According to the bankruptcy filing, enough tickets have piled up to fill "approximately 65 40-foot cargo shipping containers."

Advertisement

Chuck E. Cheese has also recently launched "e-tickets" as part of a pivot towards a more pandemic-friendly touchless customer experience. As some locations reopen, the company has already started to phase out its paper tickets.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article