The iPic Entertainment movie theater-restaurant chain said it has filed for Chapter 11 bankruptcy protection amid negotiations to reduce its debt burden through a sale or restructuring.
The 16-location operation did not identify the parties that are interested in acquiring the concern, but said they are “numerous.”
“We have hired top consultants and advisors to find a partner who shares our vision,” CEO and founder Hamid Hashemi said in a statement announcing the bankruptcy filing. “Our brand is thriving and leads the industry in popularity, but our balance sheet needs to course correct.”
He said the company’s theaters would remain open while iPic’s financial problems are resolved.
The move comes just over a year after iPic raised $15.1 million through what’s often called a “mini initial public offering,” technically a Regulation A+ IPO, an option available to small companies looking to raise equity capital.
IPic operates multiscreen facilities where customers can dine at a full-service restaurant and watch a movie. Locations in four additional states are under development, according to the company. It was founded in 2010.
The filing was made in the U.S. Bankruptcy Court of Delaware.