The luxury dine-in cinema chain iPic Entertainment declared Chapter 11 bankruptcy this week, another example of a theatre chain using bankruptcy to face the challenges of the current theatrical market. Founded in 2010, iPic Theatres’ was known for its formula of offering relatively spacious, low-capacity auditoriums with top-of-the-line recliner seats and full-service dining. They were successful throughout the 2010’s, expanding to 13 locations and nearly 100 movie theatre screens. However, the post-COVID landscape has presented challenges, with rising costs to operate facilities in trendy urban centers such as Austin, Houston, Pasadena and New York City.
iPic follows other dine-in theatre circuits in filing bankruptcy, with CMX Theatres and Alamo Drafthouse as notable forerunners. These exhibitors have used bankruptcy to walk away from underperforming locations and renegotiate lease terms at other theatres. iPic is expected to follow this same playbook, emerging with a lower cost of operations and more confident in the profitability of the locations it retains.
