iPic Entertainment filed for Chapter 11 bankruptcy on Monday, and hopes to restructure its debt and strengthen its balance sheet and will pursue a sale.

In its bankruptcy filing, the luxury theater chain said the plan is to either sell itself or reorganize to come out with a healthy balance sheet and new capital structure. The company is currently in talks to restructure its debt with numerous parties.

“The decision to commence a Chapter 11 case to pursue a comprehensive restructuring was not taken lightly, but is necessary to accomplish our long-term goals and secure the company’s future,” said Hamid Hashemi, the company’s founder and CEO.

Last week, iPic was unable to make a $10.1 million interest payment to the Employees Retirement System of Alabama and the Teachers Retirement System of Alabama. At the time, iPic said it had $2.2 million in cash on hand.

The company’s business plan called for building 25 locations in 4 to 5 years. Delays in the development cycle combined with the high cost of capital depleted iPic’s resources before the company was able to become self-funded.

“Delays related to the Delray Beach (Florida) location resulted in unforeseen costs and a significant slowdown in circuit-wide development and new grand openings,” Hashemi explained.

The theaters will remain open during the transition, and vendors, suppliers, and employees will continue to be paid. The company anticipates the restructuring process will conclude in 90 to 120 days.

Same-store sales at the theater chain had been on the decline in 2018, but fell 21.7% in the first quarter of this year.

iPic went public in February 2018 and raised $15.1 million to fund its expansion. In its most recent quarter it reported a net loss of $9.3 million, or $1.26 a share, for the quarter to March 31, wider than the $6.4 million loss, or $1.70 a share, posted in the year-earlier period.

With 16 locations in nine states, iPic has a total of 123 movie screens.

On Monday, iPic Entertainment was trading at 66 cents, down $1.01, or 61%. The stock opened at a high of 82 cents and with a low of 58 cents.

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3 responses to “iPic Entertainment Files for Bankruptcy; Pursues Sale”

  1. Debra, can you provide the Case# so that I can review the Ipic Bankruptcy filing? Was it filed in the southern district of Florida? I couldn’t access the case through Pacer.

  2. I read the article about iPIC Entertainment.
    I believe they have filed bankruptcy and I had invested and purchased some stock in iPIC. I need to know who I can contact regarding my investing and now they are bankrupt. I tried to contact the company directly, but no response.
    Thanks
    Bridge

  3. I visited the local iPIC in Scottsdale, Arizona a few weeks before they closed. They were dead and I appeared to be one of the only customers. The cost of the movie was $27 and the food brought the total bill to over $60! While the food was good, as were the seats, the actual projection system used an old screen and barely enough speakers to qualify for basic surround.

    In short, I’m shocked they were actually able to go public, much less stay open as long as they did. They were BY FAR (as in 2.5 to 3 times) the most expensive movie ticket in town (IMAX only costs $15 or less for non-3D) and yet had screens about as good as the dollar theaters (at least much better seats). How they sold this money pit to anyone is beyond me.

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