BOCA RATON, Fla. — IPIC Entertainment, which operates luxury movie theaters in Boca Raton and Delray Beach, is filing for bankruptcy, a company spokesperson confirms.
In a news release, the Boca Raton-based company said IPIC "has initiated proceedings under Chapter 11 of the United States Bankruptcy Code," and is now trying to either sell the company or put together a reorganization plan.
According to the company's bankruptcy filing, IPIC Entertainment had debts of $290,860,000 as of May 15.
A spokesperson said the bankruptcy filing will not affect operations, and its theaters in Boca Raton and Delray Beach will remain open.
However, the company did admit that "delays related to the Delray Beach location, resulted in unforeseen costs and a significant slowdown in circuit-wide development and new grand openings."
IPIC founder and CEO Hamid Hashemi released this statement to WPTV:
"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."
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"The good news is that it is not a liquidation bankruptcy, it is a reorganization bankruptcy," said Boca Raton City Councilman Andy Thompson.
Thompson said he has no worries the company will be able to solve its debt situation.
Commissioner Ryan Boylston said he hopes the community will support the local theater.
"I am hoping our community comes out and supports," said Boylston. "There are 48 local jobs and 100 total that I am worried about and want to make sure are still here."
IPIC currenly has theaters in 16 cities around the county.
The company said the bankruptcy process could take 90 to 120 days.