Boca Raton-based IPIC Entertainment has filed for Chapter 11 bankruptcy. But the Mizner Park movies will stay open.
The company announced the move today, Monday Aug. 5, and said it has plans to restructure. The process is expected to conclude in 90 to 120 days, the company added.
“Our theaters will remain open during this transition. Our employees are being paid, as are our vendors and suppliers,” said Hamid Hashemi, founder and chief executive officer of IPIC Entertainment.
“To consummate the restructuring, the company has initiated proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware (“Court”) where it will seek approval of either a sale or a reorganization plan and emerge with a healthy balance sheet and new capital structure,” according to the announcement.
The company’s need to restructure resulted from several factors, including delays in Delray Beach, Hashemi said. “Importantly, delays related to the Delray Beach location resulted in unforeseen costs and a significant slowdown in circuit-wide development and new grand openings,” he said.
Established in 2010, IPIC moved into Mizner Park on May 4, 2012. IPIC Theaters operates 16 locations with 123 screens in Arizona, California, Florida, Illinois, Maryland, New Jersey, New York, Texas, and Washington. New locations were planned in in Georgia, Texas, California and Connecticut.