The prognosis for Dave & Buster’s Entertainment Inc. (an entertainment center that provides food, drinks and arcade games) has gotten worse this week, as the coronavirus economy has severely eroded revenue and the company hopes to lay off hundreds of people.
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According to a report in the Wall Street Journal, the company warned on Wednesday that it may need to file for bankruptcy if it cannot reach a deal with lenders under the pressure of the coronavirus on the industry.
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The company announced on Friday that Dave & Buster’s revenue in the second quarter of this year had plummeted by a staggering 85% compared to last year, from $344.6 million in 2019 to $50.8 million.
In the first quarter, revenue dropped from $363.6 million last year to $159.8 million in 2020.
The business publication Restaurant Business Online reported on Wednesday that the chain also plans to lay off more than 1,300 employees in seven states. According to reports, once D&B is allowed to expand its scope of reopening, it will try to re-employ workers from the pool.
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According to a report in the Wall Street Journal, the company has reached a short-term debt relief agreement with lenders until November 1, but if the deadline is not extended, the chain will warn that it may need to file for bankruptcy.
According to the report, Chuck E. Cheese’s parent company is a similar entertainment company that targets children rather than people over 21, but due to industry pressures related to the coronavirus, the company has filed for bankruptcy. The same goes for the amusement park company Apex Parks Group LLC.
Due to the COVID-19 suspension and health precautions, many of D&B’s business locations have been closed for several months. The company said that as of September 9, it had reopened 89 of its 137 stores. Every facility.
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Each location also provides abbreviated food and beverage menus, and implements additional cleaning procedures.