IPIC Theaters, LLC — the Boca Raton-based luxury dine-in cinema operator — is mid-way through a Subchapter V chapter 11 in the Southern District of Florida before Judge Erik P. Kimball, with a confirmation hearing on its plan of liquidation set for July 29, 2026. The debtor, which runs 13 locations and is wholly owned by an affiliate of the Retirement Systems of Alabama, filed its Subchapter V petition on February 25, 2026Dkt. 1 after reporting roughly $19.4 million in net losses on $112.5 million of gross income for 2025, a decline the company attributed to slow post-pandemic recovery, a thinner theatrical release slate, and streaming competition, as laid out in its first-day declarationDkt. 18.
The case entered with a thin capital structure: approximately $1.35 million of funded debt, made up of two AFCO premium-finance promissory notes (about $1.19 million and $160,000, both at 8.34% APR) secured by unearned insurance premiums, plus a UCC-1 on leased equipment held by Konica Minolta — with no funded term loan, revolver, or noteholder tranche in the stack.
The restructuring has since pivoted to an asset-sale wind-down. By its May 2026 operating reportDkt. 210, the debtor had completed the sale of six theater locations under a court-approved asset purchase agreement, cut headcount from roughly 1,300 at filing to 600, and generated $19.7 million in cash receipts against $12.9 million in disbursements for the month, leaving an ending cash balance near $9.3 million. Underlying operating EBITDA was just $91,094, and the debtor projects roughly negative $2.5 million in net cash flow for June as sale proceeds roll off.
The claims docket is dominated by labor exposure. The June 19 claims registerDkt. 206 lists 48 claims headlined by a $6.85 million class-action claim and a $4.80 million PAGA claim brought by Nikola Scuric, alongside a cluster of Janelle Carney-represented claims aggregating over $11.8 million. In parallel, the debtor secured a June 22 orderDkt. 209 authorizing payment of roughly $222,000 in prepetition insurance audit premiums to Travelers and Charter Oak after Travelers threatened to cancel workers' compensation coverage — relief advanced on a doctrine-of-necessity emergency motionDkt. 203 over an expedited hearing cycle.
