The luxury theatre chain iPic recently filed for chapter 11 bankruptcy protection and is looking for potential buyers.
The company, which is currently led by a former executive of big-box mega theaters, Hamid Hashemi, has claimed that the delays in development and the high cost of capital as the chief reasons for their bankruptcy.
Hamid Hashemi said: “Importantly, delays related to the Delray Beach [Florida] location resulted in unforeseen costs and a significant slowdown in circuit-wide development and new grand openings. 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.”
The company is hoping that the sale will allow them to restructure their debt and consolidate their finances. They promised that their theatres will remain open during this transition and that all of their employees, suppliers, and vendors will still get paid on time. They currently have 16 locations across nine US states, with plans to open theatres in four additional US states.
Hashemi said: “The financial restructuring will allow the company to further improve and enhance its theaters and dining experiences, continue to provide an unparalleled guest experience that is evidenced by the over 2 million iPic Access loyalty members, and continue with its expansion plans.”
The company has blamed the types of movies that are usually released in Hollywood these days – mainly blockbusters that are marketed more towards children and younger audiences. Because of their status as a luxury theatre, with features such as premium seats and food services, the tickets for iPic are double, sometimes triple the amount of the national ticket price of approximately $9. This means that it is a highly specialized theatre, with families rarely going to movie screenings with such an exorbitant cost.