IPIC Theaters: Subchapter V Liquidation of Premium Theater Chain

IPIC Theaters, the premium dine-in movie theater operator, filed for chapter 11 protection under Subchapter V on February 25, 2026, in the U.S. Bankruptcy Court for the Southern District of Florida. The debtor is pursuing an orderly liquidation rather than a conventional operating reorganization, seeking to monetize its thirteen leased theater locations through sales, lease assignments, and consensual resolutions with landlords and other stakeholders. IPIC reported fiscal 2025 gross income of approximately $112.5 million alongside a net loss of approximately $19.4 million, but the company attributed post-pandemic attendance declines and streaming competition as factors that made continued operations unsustainable.

The company's predecessor filed for chapter 11 in 2019 in Delaware. The Retirement Systems of Alabama acquired the predecessor's assets through that proceeding, and the corporate ownership statement identifies the Employees Retirement System of Alabama and the Teachers Retirement System of Alabama as the current equity holders. CEO Patrick Quinn leads the company, with a 2026 annual salary of $410,000. The debtor's first-day package focused on stabilizing operations, preserving customer and vendor relationships, maintaining employee wages, and keeping insurance and banking infrastructure intact while the liquidation process moves forward.

Debtor	IPIC Theaters, LLC
Court	U.S. Bankruptcy Court, Southern District of Florida (West Palm Beach Division)
Case Number	26-12313
Petition Date	February 25, 2026
Judge	Hon. Erik P. Kimball
Subchapter V Trustee	Carol Lynn Fox (GlassRatner)

Subchapter V Liquidation and RSA Ownership

IPIC elected Subchapter V of chapter 11 to pursue what the company described as an orderly liquidation of its assets. The debtor's approach centers on monetizing individual theater locations through lease assignments, asset sales, and negotiated resolutions with landlords, film studios, and other counterparties.

The case management summary stated that the debtor chose the Subchapter V path specifically because the long-tail effects of the COVID-19 pandemic left theater attendance below pre-pandemic levels, while streaming platforms shifted consumer viewing habits away from theatrical exhibition. Those declines reduced both box office revenue and the related food-and-beverage revenue that IPIC depends on. Film-rental splits, labor costs, and lease obligations further strained the company's liquidity position. The domestic box office reached approximately $8.66 billion in 2025 but remained roughly 24% below the pre-pandemic peak of $11.36 billion in 2019, and national admissions fell from approximately 1.23 billion in 2019 to roughly 716 million in 2025, masking the attendance collapse behind rising average ticket prices. The rapid expansion of streaming platforms — including Disney+, HBO Max, Peacock, and Paramount+ launching between November 2019 and March 2021 alongside Netflix and Amazon Prime Video — compressed the standard exclusive theatrical window from 90 days to approximately 30 to 45 days, further eroding the economic model for premium exhibition venues.

Carol Lynn Fox was appointed as Subchapter V trustee on February 26, 2026. The court set a Subchapter V status conference for April 15, 2026, and a claims bar date of May 6, 2026. The Section 341 meeting of creditors was scheduled for March 26, 2026.

Company Background and Operating Footprint

IPIC operates a premium dine-in movie theater concept with approximately 100 screens combining luxury seating with full-service restaurant and bar offerings. As of the petition date, the company operated thirteen theaters across eight states: Florida, Georgia, Maryland, Texas, New York, New Jersey, California, and Washington. The business is headquartered in Boca Raton, Florida, at 433 Plaza Real, Suite 355, and all thirteen theater premises are leased.

The brand traces its origins to founder Hamid Hashemi, who entered the movie exhibition business in 1984 when he founded Muvico Theaters in South Florida, grew Muvico to over 100 screens, and sold it to Regal Cinema in 1995. Hashemi formally founded iPic Entertainment in 2006, and the first iPic theater opened in 2007 at Bayshore Town Center in Glendale, Wisconsin. A pivotal expansion came in September 2010, when iPic acquired a majority stake in Village Roadshow Gold Class Cinemas USA from Australian entertainment conglomerate Village Roadshow, which had opened six U.S. luxury cinema locations. The combined entity became iPic-Gold Class Entertainment, LLC, a Delaware limited liability company. RSA entered the picture as a major lender beginning around 2010 through the Teachers' Retirement System and Employees' Retirement System of Alabama, eventually becoming iPic's largest shareholder. In February 2018, iPic Entertainment Inc. completed a Regulation A+ offering on the NASDAQ under the ticker symbol IPIC, raising approximately $15.1 million — well below its $40 million target — before the stock collapsed below $2 as financial distress intensified.

The debtor's premium concept features two seating tiers: Premium seats with leather chaise-lounge recliners and counter-service dining, and Premium Plus seats with fully reclining leather "pod" configurations, paired swivel tables, push-button server service, and complimentary pillows and blankets. Ticket prices range from approximately $14 to $29 or more per person, substantially above the national average of approximately $16. IPIC operates four branded dining concepts: IPIC (in-theater dining), City Perch Kitchen + Bar (seasonal American cuisine), The Tuck Room (cocktail-focused dining), and Serena Pastificio (upscale Italian). The culinary program was developed under James Beard Award-winning Chef Sherry Yard, who served as COO of the restaurant division.

Revenue comes from both exhibition and in-theater dining. For fiscal year 2025, IPIC reported approximately $40.8 million of box office sales, $63.3 million of food-and-beverage sales, and $8.4 million of advertising and other revenue. Food-and-beverage revenue accounted for more than 56% of total gross income. For the 2026 fiscal year through February 20, those categories totaled approximately $5.0 million, $7.8 million, and $0.1 million, respectively. The company announced plans to pursue a court-supervised sale of its assets while continuing operations during the process.

The cash-management filings show that an RSA excess cash account has served as a backstop funding source, drawn upon when operational cash flow falls short.

Financial Position and Balance Sheet

The debtor's December 2025 balance sheet, filed as part of the Section 1116 package on the petition date, reported total assets of approximately $155.3 million and total liabilities of approximately $113.9 million. The debtor filed its initial schedules and statement of financial affairs on March 11, 2026, including Schedules A/B, D, E/F, G, and H, along with a certified payroll and sales tax report.

Lease liabilities. Lease obligations totaled roughly $102.4 million, the largest category on the liability side. Key landlords include entities associated with Howard Hughes Corporation and Federal Realty Investment Trust.

Cash position. The filing showed approximately $1.8 million in a concentration account, with de minimis or negative balances across several other operating accounts.

Fixed assets. The debtor's fixed-asset base included approximately $6.2 million of projection equipment and screens, alongside leasehold improvements and concession equipment.

Secured and unsecured claims. The case management summary stated that the debtor was not aware of secured claims other than a UCC-1 financing statement filed by Konica Minolta Premier Finance relating to leased equipment and liens held by AFCO Direct, a division of AFCO Credit/Acceptance Corporation, under two premium-finance agreements secured by unearned or return insurance premiums and dividends. Non-insider, non-contingent unsecured debt was estimated at approximately $2.71 million, and tax obligations at approximately $141,545. The remarkably modest prepetition obligation profile reflects the clean balance sheet achieved through RSA's 2019 credit bid, which eliminated approximately $205 million in prior secured obligations.

Top unsecured creditors. The list of twenty largest unsecured creditors shows a fragmented trade and services creditor base. US Foods holds the largest listed claim at approximately $247,000, followed by HVAC Mechanical Services of Texas (d/b/a Hunton Services) at $41,286, Washington State Department of Revenue at $34,600, ADP at $27,354, and Schindler Elevator at $14,450. The creditor base is dominated by food suppliers, building maintenance providers, payroll processors, and taxing authorities.

First-Day Motions and Operational Stabilization

The debtor filed first-day motions to continue its existing cash-management system, pay prepetition employee wages and benefits, maintain utility service, honor customer programs, continue insurance coverage, and pay critical vendors. The First Day Declaration states that the requested relief is meant to stabilize the business, preserve estate value, and allow the debtor to focus on plan confirmation and asset liquidation.

Cash management. The debtor uses ten JPMorgan Chase bank accounts, four of which are dormant, with funds sweeping to a master operating account. A separate excess cash account holds funds from the Retirement Systems of Alabama and is drawn upon only when needed. The debtor reported approximately $2,700 in monthly bank fees, merchant fees of roughly 3.2% on credit-card transactions, approximately $4,374 per quarter for its Concur expense platform, and roughly $1,450 for the February 2026 legacy gift-card platform fee. Judge Kimball entered an interim cash-management order authorizing continued use of the existing system, with a final hearing set for March 25, 2026.

Utilities. The utilities motion proposed adequate assurance deposits equal to roughly two weeks of utility expense for each provider, based on average monthly payments over the six months before the petition date, reduced by any deposits already held. The interim utilities order preserved service, required utility companies seeking additional assurance to submit written requests within 15 days, and pushed unresolved disputes to the March 25 final hearing. The court also entered interim or final orders covering taxes, critical vendors, and insurance.

Workforce and Customer Programs

IPIC reported approximately 1,300 full-time and part-time employees as of the petition date, with roughly $2.16 million of prepetition employee obligations covering wages, salaries, commissions, and health-and-welfare benefits. The workforce comprised approximately 400 full-time and 900 part-time employees spanning executive and managerial personnel, site-level management, event sales staff, front-of-house employees, and back-of-house staff including chefs, theater technicians, and maintenance workers. The wages motion breaks this down across payroll arrears, accrued paid time off, expense reimbursements, and benefit contributions. The court approved a slightly reduced interim package of approximately $2.02 million under the interim wages order, with the balance deferred to the March 25 final hearing. The company issued WARN Act notices to all approximately 1,300 employees concurrent with the filing.

The debtor filed an emergency motion on the petition date seeking authority to continue honoring customer-facing programs rather than abruptly terminating them. The customer programs motion describes a tiered loyalty structure: Silver membership is free, Gold membership carries a $39 annual fee, members earn one point per dollar spent, and 500 points can be redeemed for $5 of credit. As of January 31, 2026, the company reported 65 million outstanding IPIC ACCESS points; the debtor noted that the points have no cash value and are not redeemable for cash or cash equivalents, but argued that honoring these programs is necessary to preserve goodwill and protect going-concern value at individual locations.

The Section 1116 balance sheet reflected deferred customer liabilities: approximately $1.13 million of gift-card deferred revenue, approximately $657,000 for member reward points, approximately $430,000 for loyalty memberships, and approximately $127,000 of event deposits. The court granted interim authority to maintain the programs.

Insurance, Banking, and Commercial Card Relief

Insurance. The debtor's insurance motion, filed on the petition date, sought authority to maintain existing insurance policies. Annual insurance costs across policies totaled approximately $3.41 million, with about $2.93 million financed or invoiced in installments and about $327,000 paid monthly. A Hartford property policy carried a total insured value above $273 million, with a next payment due on March 1, 2026.

Banking and cash management. The debtor sought authority to maintain existing bank accounts on the petition date, and the court entered an order on February 26 authorizing the debtor in possession to continue operating its business, close prepetition bank accounts, and open debtor-in-possession accounts.

Commercial card program. On March 4, the debtor filed an emergency motion to restore its JPMorgan commercial card program, which had been suspended postpetition. The cards were used by 44 key employees across all 13 theaters for food and beverage procurement, IT subscriptions, licensing fees, and day-to-day operating costs. The prepetition credit line was $150,000, the outstanding petition-date balance was approximately $23,400, and average weekly usage was about $30,000. JPMorgan held a security interest or setoff right against the master checking account and initially suspended the program after the filing. The parties then negotiated modified terms: $40,000 in availability, a $45,000 minimum account balance, continued weekly sweeps, and at least ten days' advance written notice before any termination. Both the Subchapter V trustee and the U.S. Trustee had no objection. Judge Kimball approved the interim commercial card order on March 5, 2026, with a final hearing set for March 25, 2026.

Location Closures and Workforce Impact

The Fort Lee, New Jersey theater will close later this year, and the debtor issued a WARN notice for 97 layoffs at that eight-screen, 533-seat location with an effective layoff date of May 28, 2026. The Midtown Atlanta theater has also been reported closed following the filing, with a separate WARN notice filed in Georgia listing more than 160 layoffs at that location and an April 28, 2026 closure date. The debtor is reportedly seeking to sell the Serena Pastificio restaurant brand, which was attached to the Atlanta location, to outside investors.

Beyond the East Coast closures, IPIC will close both of its Los Angeles County locations — the Westwood theater on Wilshire Boulevard and the Pasadena theater — as well as the Redmond, Washington location, all with a reported April 28, 2026 closure date. iPic had a notable profile in Los Angeles and was among the exhibitors that would book Netflix and other streamer films, in contrast to longstanding bans at AMC, Regal, Cinemark, and other major chains.

The case-management summary describes a theater-by-theater evaluation, with each location assessed for potential sale, lease assignment, or other monetization. The debtor intends to continue operations at remaining locations while pursuing an expedited sale of assets.

The 2019 Bankruptcy and RSA Credit Bid

IPIC's predecessor, iPic-Gold Class Entertainment, LLC, and five affiliated entities filed for chapter 11 protection on August 5, 2019, in the U.S. Bankruptcy Court for the District of Delaware (Case No. 19-11737), jointly administered before Judge Laurie Selber Silverstein. The debtors were represented by Pachulski Stang Ziehl & Jones LLP, with Aurora Management Partners serving as financial advisor and PJ Solomon as investment banker. At the time of filing, the predecessor operated 16 theaters with 123 screens, employed approximately 2,010 workers, and listed $290.9 million in total debts, including approximately $205 million in secured obligations owed to RSA.

The predecessor's first-day declaration attributed the financial distress to intensifying competition as other exhibitors rolled out reclining-seat formats at lower price points, rising construction and buildout costs that tightened liquidity, and the NASDAQ offering's failure to raise sufficient capital for the company's expansion plan. Revenue had peaked at approximately $148 million in fiscal year 2018, but same-store sales declined 21.7% by the first quarter of 2019.

RSA provided $16 million in debtor-in-possession financing at 10.5% interest. PJ Solomon contacted 64 potential acquirers, and 31 signed non-disclosure agreements. At an October 17, 2019 auction, iPic Theaters, LLC — a newly formed RSA affiliate — prevailed as the winning bidder with a credit bid structured at approximately $40 million in offset credits against prepetition and postpetition indebtedness, plus assumption of certain liabilities, defeating a $48.8 million competing bid from Cinemex Holdings USA. The Bankruptcy Court approved the sale on October 29, 2019, and the transaction closed on November 15, 2019. On that same date, founder Hamid Hashemi and three other executives resigned, and M. Hunter Harrell, RSA's Director of Private Placements, became managing member of the new entity. Patrick Quinn was subsequently named CEO in approximately May 2022.

Less than six months after the acquisition, the COVID-19 pandemic shuttered nearly all U.S. theaters by mid-March 2020, with major markets remaining closed for approximately 12 to 15 months. The chain contracted from 16 locations and 123 screens at its 2019 peak to 13 locations and 100 screens by early 2026, having closed properties in Arizona, Illinois, and Wisconsin while opening one new location in Atlanta in December 2020.

Professional Retentions and Case Administration

The debtor sought to retain Burr & Forman LLP as bankruptcy counsel as of the petition date, with Christopher R. Thompson and Derek Meek identified as key professionals. The debtor filed an amended retention application on March 11, 2026, with a hearing scheduled for March 25, 2026. The disclosure of attorney compensation was filed the same day. Development Specialists, Inc. was retained as financial advisor and consultant for the liquidation process, with Joseph J. Luzinski as the lead DSI professional and Michael S. Grant and Salvatore C. Arena among the core team. DSI's engagement contemplates a weekly chapter 11 fee run rate of approximately $20,000, backed by a $250,000 retainer.

The debtor also filed an application to retain Stretto, Inc. as claims, noticing, and solicitation agent on February 27, 2026, with a non-evidentiary hearing scheduled for March 25, 2026.

Early appearances. WilmerHale entered a notice of appearance for The Walt Disney Company and its affiliates on March 2, 2026. Simon Property Group, L.P. filed a notice of appearance on February 26, 2026. On March 4, Kelley Drye filed a notice of appearance on behalf of BPP East Union LLC, Crocker Downtown Development Associates, and Crocker Mizner Park IV, Ltd., identified as IPIC landlords. The Town of Fairview filed a notice of appearance on March 12, 2026, reflecting creditor interest from one of the debtor's Texas theater communities.

Key Dates and Next Steps

Petition Date	February 25, 2026
First-Day Hearing	February 26, 2026
Schedules and SOFA Filed	March 11, 2026
Section 341 Meeting	March 26, 2026 (telephone)
Professional Retention Hearings	March 25, 2026
Commercial Card Final Hearing	March 25, 2026
Subchapter V Status Conference	April 15, 2026
General Claims Bar Date	May 6, 2026
Government Claims Bar Date	August 24, 2026

No DIP financing facility has been sought. The March 25 hearing date consolidates final hearings on wages, commercial card authority, and professional retentions. The Subchapter V status conference is set for April 15, 2026.

Frequently Asked Questions

What type of bankruptcy did IPIC Theaters file?

IPIC Theaters filed chapter 11 under Subchapter V on February 25, 2026, in the U.S. Bankruptcy Court for the Southern District of Florida. The company has stated that the case is intended to facilitate an orderly liquidation of assets rather than a traditional reorganization.

Who owns IPIC Theaters?

The Retirement Systems of Alabama owns 100% of the debtor's equity interests. Specifically, the Employees Retirement System of Alabama and the Teachers Retirement System of Alabama hold the ownership stake, having acquired the predecessor's assets out of a 2019 bankruptcy case in Delaware through a credit bid at auction.

Is IPIC Theaters closing all of its locations?

The debtor stated it intends to continue operations during the bankruptcy process while pursuing an orderly liquidation. The Fort Lee, New Jersey location has a WARN notice for 97 layoffs effective May 28, 2026. The Midtown Atlanta theater and its attached Serena Pastificio restaurant are set to close April 28, with more than 160 layoffs. The Westwood, Pasadena, and Redmond locations are also reported to close on April 28, 2026. The company operated thirteen theaters across eight states as of the petition date, and each location is being evaluated for potential sale, lease assignment, or other disposition.

Are IPIC gift cards still valid?

The debtor filed an emergency motion on the petition date seeking authority to continue honoring customer programs, including gift cards, loyalty memberships, and reward points. The court granted interim authority to maintain these programs.

Has IPIC filed for bankruptcy before?

Yes. IPIC's predecessor entity, iPic-Gold Class Entertainment, LLC, filed for chapter 11 protection in Delaware on August 5, 2019. The predecessor operated 16 theaters with 123 screens and listed $290.9 million in total debts. RSA acquired the assets through a credit bid at auction in October 2019, and the current filing represents the second restructuring cycle for the brand.

Who are IPIC's professional advisors in the bankruptcy?

The debtor retained Burr & Forman LLP as bankruptcy counsel and Development Specialists, Inc. as financial advisor and consultant. Carol Lynn Fox of GlassRatner was appointed as the Subchapter V trustee. Stretto, Inc. has been proposed as claims and noticing agent.

Who is the claims agent for IPIC Theaters?

Stretto, Inc. has been proposed as the claims, noticing, and solicitation agent. The retention application is scheduled for a hearing on March 25, 2026.

For more coverage of chapter 11 cases in the entertainment and hospitality sectors, explore the ElevenFlo bankruptcy blog.