BOCA RATON, Fla., Aug. 5, 2019 /PRNewswire/ -- IPIC®
Entertainment ("IPIC" or the "Company") (NASDAQ: IPIC),
creators of America's coveted IPIC® luxury theater-and-restaurant
destinations, announced today that it is in negotiations with
numerous parties to complete a comprehensive financial
restructuring. 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. The financial
restructuring will allow the Company to further improve and enhance
its theaters and dining experiences, continue to provide an
unparalleled guest experience that is evidenced by the over 2
million IPIC ACCESS loyalty members, and continue with its
expansion plans.
"To ensure an exciting future for IPIC for the benefit of our
guests, members, employees and other partners, we have hired top
consultants and advisors to find a partner who shares our vision.
Our brand is thriving and leads the industry in popularity, but our
balance sheet needs to course correct. 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.
Current management will remain in place to work alongside the
Company's restructuring advisors and business will continue
uninterrupted. Operations will be supported by debtor-in-possession
(DIP) financing provided by the Retirement System of Alabama. The Company anticipates that the
restructuring process will conclude in 90-120 days.
Mr. Hashemi explained that the Company's need to restructure
resulted from several factors. "IPIC was the first and only company
building luxury theaters just 10 years ago which led to double
digit growth year over year before the industry took notice. IPIC's
business plan called for building 25 locations in 4 to 5 years.
Delays in development cycle combined with the high cost of capital
depleted IPIC's available resources before the company was able to
reach critical mass and become self-funded. Importantly, delays
related to the Delray Beach
location, resulted in unforeseen costs and a significant slowdown
in circuit-wide development and new grand openings. 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."
Court filings as well as other information related to the
reorganization are available at, https://cases.stretto.com/iPic or
by calling (855) 221-1800 (toll free in North America).
Pachulski Stang Ziehl & Jones LLP is serving as legal
counsel, Aurora Management Partners is serving as financial
advisor, and PJ Solomon is serving as investment banker
to the Company.
About IPIC® Entertainment Inc.
Established
in 2010 and headquartered in Boca Raton,
FL, IPIC® Entertainment is America's premier luxury
restaurant-and-theater brand. A pioneer of the dine-in theater
concept, IPIC® Entertainment's mission is to provide visionary
entertainment escapes, presenting high-quality, chef-driven
culinary and mixology in architecturally unique destinations that
include premium movie theaters and restaurants. IPIC® Theaters
offers guests two tiers of luxury leather seating, Premium Chaise
lounge and Premium Plus pod or reclining seating options. IPIC®
Theaters currently operates 16 locations with 123 screens in
Arizona, California, Florida, Illinois, Maryland, New
Jersey, New York,
Texas, and Washington and new locations planned for
Georgia, Texas, California and Connecticut. For more
information, visit www.ipic.com.
Media Contacts:
Michelle Soudry
The Gab Group for IPIC Entertainment
msoudry@thegabgroup.com
561.750.3500
Jennifer E. Mercer
Donlin Recano Strategic Communications for IPIC Entertainment
jmercer@donlinrecano.com
818.802.5199
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SOURCE IPIC Entertainment