Luxury movie and dining chain iPic Entertainment Inc. filed for bankruptcy in Delaware and may sell itself less than two years after its initial public offering.
The Boca Raton, Florida-based chain owes about $205 million under a secured credit line and as much as $15 million to various vendors, suppliers and other unsecured creditors, proposed financial adviser David M. Baker of Aurora Management Partners said in a Chapter 11 declaration. The company lost about $57 million in 2018, filings show.
The company’s stock lost most of the little value that remained, with the Class A shares down $1.02 to 65 cents a share as of 9:40 a.m. in New York. The shares debuted in February 2018 at $18.50.
IPic’s 16 upscale theaters allow customers to dine while watching movies and offer table service at some premium seats. Competition, rising construction costs and a weak initial public offering last year all contributed to the bankruptcy, Baker said. Rival movie theaters offering reclining seats at lower prices have particularly hurt iPic.
The company is trying to sell itself, court papers show. IPic negotiated prior to bankruptcy with its creditors, which include The Employees’ Retirement System of Alabama and Teachers’ Retirement System of Alabama. Lenders have agreed to a 90-day window for iPic to be either sold or recapitalized.
The Teachers’ Retirement System of Alabama has agreed to provide a $16 million bankruptcy loan, court papers show.
Pachulski Stang Ziehl & Jones LLP is proposed legal counsel for iPic and PJ Solomon is its proposed investment banker.
The case is IPic-Gold Class Entertainment LLC, 19-11739, U.S. Bankruptcy Court for the District of Delaware.