Solomon Partners is Advising IPIC on its Chapter 11 Bankruptcy Proceedings
Solomon Partners is serving as investment banker to IPIC Entertainment on its Chapter 11 bankruptcy proceedings.
Established in 2010, IPIC® Entertainment is America’s premier luxury restaurant-and-theater brand. A pioneer of the dine-in theater concept, they provide visionary entertainment escapes, presenting high-quality, chef-driven culinary and mixology in architecturally unique destinations. 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.
As Variety noted, Hamid Hashemi, Founder and Chief Executive Officer, said “It’s business as usual. We’re going to continue showing movies. We’ll have the same management team. The same membership program. Our guests can expect the same level of service. This is a restructuring of our balance sheet. It’s not an operational issue.”
Mr. Hashemi further explained the 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 four to five 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.” He noted 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.”