Local Entertainment Brand ‘Lacks Adequate Funds’
iPic Entertainment, a movie theater company based in Boca Raton, recently filed for Chapter 11 bankruptcy due to missing an interest payment and lacking adequate funds to pay debts.
In the filing, iPic listed more than $290 million in liabilities. In July, iPic missed a $10.1 million interest payment for a loan. The company’s CEO Hamid Hashemi blames their financial problems on construction delays for future movie theaters, which included the opening of the Delray Beach theater in March.
“Delays related to the Delray Beach location resulted in unforeseen costs and a significant slowdown in circuit-wide development and new grand openings,” said Hashemi in a statement. “The decision to commence a Chapter 11 case is necessary to secure the company’s future.”
The company planned to open 25 new locations over the next five years, but the bankruptcy filing has put that plan on hold. Aside from the Boca Raton and Delray Beach locations, iPic operates 123 theaters in 16 different cities across the country. These locations are expected to remain open while the bankruptcy filing is pending.
The bankruptcy process will not conclude for approximately four months. As iPic waits for the bankruptcy process to finish, employees will continue to receive paychecks.
“Our employees are being paid,” said Hashemi in a statement. “As are our vendors and suppliers.”
The theaters in Delray Beach and Boca Raton will remain open for the foreseeable future.