Old Pasadena Luxury Movie Theater’s Parent Company Files for Bankruptcy

Published : Friday, August 16, 2019 | 4:50 AM

iPic Entertainment, which owns luxury movie theater chain iPic that operates a theater at One Colorado in Pasadena, has filed for Chapter 11 bankruptcy protection and said it will try to sell itself.

The company announced last week it had filed for bankruptcy in Delaware. Through the Chapter 11 process, iPic Entertainment said it will “seek approval of either a sale or a reorganization plan and emerge with a healthy balance sheet and new capital structure.”

Because of the news, shares of the company fell nearly 65 percent to $0.59 per share last August 5.

iPic operates casual restaurants, farm-to-glass full-service bars, and theater auditoriums with in-theater dining at 16 theaters in nine states. Its Pasadena location is at 42 Miller Alley.

The company said its theaters will remain open during the transition and its employees, vendors and suppliers are still being paid.

Hamid Hashemi, iPic Founder and Chief Executive, said there were several factors to blame for the company’s financial difficulties.

“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,” he said in a statement. “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.”

Last week, iPic warned investors that it could file for bankruptcy after it missed 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.

In its bankruptcy filing, iPic listed $290.9 million in debts, according to a report in the South Florida Sun Sentinel. Top unsecured creditors include the Yetter Coleman law firm, which is owed $2.9 million, as well as Walt Disney Studios, SONY Pictures, Universal Film Exchange and Paramount Pictures, the report said.

When same-store sales fell over 21 percent in the first quarter this year, iPic said too many of the types of movies being released by Hollywood were geared more toward children. It also said the January government shutdown and February’s weather were to blame for a number of closures and weaker attendance.

As a luxury theater, iPic’s tickets are more than double the national average.

To learn more about the Pasadena theater, visit www.ipic.com/?siteId=4.

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