RSA-backed movie theater company files for Chapter 11
Struggling luxury movie theater company iPic Entertainment announced this week that it has filed for Chapter 11 bankruptcy reorganization under the weight of debt it can’t repay, including about $205 million it owes to the Retirement Systems of Alabama.
The Boca Raton, Fla.-based company was founded in 2010 and specializes in upscale movie theater facilities that incorporate restaurants, allowing guests to have food delivered to cushy, private seats. It operates 16 locations in nine states and still has plans for locations in four other states. It went public last year, selling stock at $18.50 a share and raising $15 million.
But iPic said unexpected development delays drained its resources and forced the Chapter 11 filing. By July 25, it announced that it had missed a $10.1 million interest payment to RSA and that it had just $2.2 million on hand.
The company expects to continue to run its theaters and pay its vendors through the debt reorganization process with the help of $16 million in debtor-in-possession revolving loans from RSA, even as it tries to sell the company. “Our brand is thriving and leads the industry in popularity, but our balance sheet needs to course correct,” iPic founder and CEO Hamid Hashemi said in a release.
Read more: https://www.montgomeryadvertiser.com/story/news/2019/08/07/rsa-backed-movie-theater-company-files-chapter-11/1947467001/