The filing does not affect its non-U.S. operations, which will continue "as normal."

The company plans to reorganize but "conduct its business operations as usual," with CEO Matt Booty noting that "Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment."

"This filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives," he explained.

After Midway was sold for a paltry $100,000, some investors were able to demand reimbursement due to the change in leadership. They initially had until mid-January to decide if they wanted to collect, but the deadline was postponed until February 19.

In all, Midway faces $240 million in debt, though only $150 million may be due February 19. That $150 million is the sum of two $75 million investments, which originally weren't due to be repaid until 2025 and 2026.