It feels like the entertainment restaurant sector is either staying afloat or sinking underwater these days.
Multiple establishments are seeing a steady progress as they’ve opened new locations and continue to recover from the effects of COVID-19. Others, however, struggle to stay afloat and have closed location doors for good.
Even though chains like Round 1 Bowling & Arcade, Dave & Busters and Chuck E. Cheese have been opening new locations and refurbishing existing ones, Velocity Esports Inc. hasn’t been so fortunate.
The popular arcade restaurant and bar chain and its four affiliates filed for Chapter 11 bankruptcy protection to reorganize its business following the closing of a location at the Woodfield Mall in Schaumburg, Illinois, The Street reported.
According to the outlet, the chain still operates its locations in Newport and Las Vegas but a location that was set to open in Orlando has yet to do so.
Velocity Esports Inc. filed for a Chapter 11 bankruptcy in the District of Nevada on Wednesday, according to BankruptcyObserver.com. It was a voluntary filing.
“VELOCITY ESPORTS, INC. indicated on its bankruptcy petition that it does not expect there will be sufficient assets in the estate to make a payment to the unsecured creditors,” the site reported.
The company listed $1 million to $10 million in assets and liabilities in its filing.
The Las Vegas-based restaurant and entertainment chain, whose motto is “Next Level Gaming, Next Level Fun,” offers a 16-lane, full-size bowling center at the Newport location, an 8-lane bowling center in Las Vegas, arcade games, esports lounges, social gaming lounges, elevated casual dining, and craft beverages.
