Luxury IPIC theaters chain files for Chapter 11 bankruptcy
HOUSTON, Texas (KTRK) -- Luxury theater chain IPIC Entertainment announced Monday it has filed for Chapter 11 bankruptcy protection, which will allow it to restructure its debt.
Theaters will remain open during this time and employees and vendors are being paid, said Hamid Hashemi, Founder and Chief Executive Officer of IPIC Entertainment.
Current management will also remain in place through the transition. It expects the restructuring process to be completed in 90-120 days.
IPIC says filing for bankruptcy will also allow it to strengthen its balance sheet and seek approval for either a sale or a reorganization plan.
The company has a location in the River Oaks District between Highland Village and the Galleria. IPIC is known for its in-theater dining and large, leather reclining seats with blankets and pillows.
Hashemi explained that IPIC's business plan called for building 25 locations in four to five years, but delays hindered that progress, becoming one of several reasons why IPIC needed to restructure.
"Delays in development cycle combined with the high cost of capital depleted IPIC's available resources before the company was able to reach critical mass and become self-funded. Importantly, delays related to the Delray Beach location resulted in unforeseen costs and a significant slowdown in circuit-wide development and new grand openings," Hashemi said.
IPIC currently operates 16 locations across nine states with more slated to open in Georgia, Texas, California and Connecticut.
The company has more on the court filings related to the bankruptcy online.
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