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The basics:

• iPic Theaters files Chapter 11 bankruptcy in US Bankruptcy Court in Florida
• Company plans court-supervised sale while continuing operations
• Fort Lee location remains open; 97 employees received WARN notices
• Chain lists $10M–$50M in assets; up to $10M in liabilities

Luxury dine-in movie chain iPic Theaters is trying to script a comeback through bankruptcy court.

After filing for Chapter 11 bankruptcy protection, the Boca Raton-based chain plans to pursue a court-supervised sale of its assets while it works to restructure. It announced the plans in a Feb. 26 press release.

In connection with the filing in U.S. Bankruptcy Court for the Southern District of Florida, iPic said it issued WARN notices to alert employees their jobs could end as the process moves forward.

For now, the brand says it aims to keep operations running normally. A spokesperson confirmed to NJBIZ that iPic’s lone New Jersey location in Fort Lee remains open.

According to a notice filed with the state Department of Labor & Workforce Development, 97 employees in Fort Lee could potentially find themselves out of work by the end of May. The location opened in 2016 as iPic’s first in the state.

iPic is the latest upscale, dine-in cinema chain to pursue Chapter 11 as the movie theater industry continues to wrestle with debt and changing viewing habits, The Street noted. Operators including CMX Cinemas, Alamo Drafthouse, Studio Movie Grill and LOOK Dine-In Cinemas have all sought bankruptcy protection. However, some later restructured or were sold and continued operating, the outlet reported.

The best path forward

Founded in 2010, iPic offers an upscale cinema experience. It features chef-driven food and cocktails served during movies.

iPic’s footprint spans 13 locations across eight states.

The company also filed for Chapter 11 in 2019. At the time, it had struggled with heavy debt, high construction costs and slower-than-expected growth following its IPO the prior year. The company said it expanded too quickly and couldn’t keep up with expenses. The growth forced it to restructure and cut debt before emerging under new ownership, Restaurant Business reported at the time.

In a statement, iPic Chief Executive Officer Patrick Quinn said, “After exploring a range of possible alternatives, the Company concluded that a court-supervised sale of assets is in the best interest of the Company and its stakeholders.”

“We are committed to continuing our business operations with minimal impact throughout the process and will endeavor to serve our customers with the high standard of care they have come to expect from us,” he said.

In its petition, IPIC listed estimated assets of $10 million to $50 million. It estimated liabilities of $1 million to $10 million.

Quinn went on to say, “The company anticipates sufficient liquidity to operate the business during an expedited sale process and the formulation of its plan of reorganization. We believe this process is the best path forward for the company to continue to be an industry leader in the luxury dine-in theater and restaurant business. We are committed to making this a seamless process for all of our stakeholders.”