Chuck E. Cheese Is Asking To Destroy 7 Billion Prize Tickets So It Can Save $1 Million
Chuck E. Cheese is asking permission to destroy a supply of a whopping seven BILLION of its prize tickets at a cost of almost $2.3 million as it will actually save the company money in the long run.
In an emergency motion this week, CEC Entertainment, the parent company behind the classic chain, said that because of the rapid drop-off in sales and the acceleration of the adaptation of e-tickets caused by the COVID-19 pandemic, Chuck E. Cheese now how has a buildup of prize tickets it no longer has need for. This massive supply of seven billion prize tickets is enough to fill about "65 forty-foot cargo shipping containers," according to the filing.
As a result, the company wants to spend $2,287,342.97 in order to purchase—and then destroy—these tickets so that they will not fall into the hands of the public. This is a very hefty price tag, but they also explained in the filing that doing so would actually save the company around $1 million in the long run.
“Since Prize Tickets are redeemable by guests at significantly higher value than the cost of Prize Tickets, the Debtors believe it is in the best interests of the estates to mitigate any risk of these tickets being circulated to the general public," they wrote in the filing.
Chuck E. Cheese's parent company recently filed for bankruptcy, and, as such, has to obtain permission for such an action. A hearing has been scheduled for next Monday, according to Bloomberg, so a judge can hear this request.
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