Luxury theater chain iPic, which operates 13 locations in eight states, has filed for bankruptcy amidst a period of flagging attendance and ongoing struggles in the theatrical industry’s efforts to recover at the box office.
On Feb. 25, the company filed for a sale through Chapter 11 reorganization in Florida federal court and is already set to close one of its locations in Atlanta. Further closures may be announced if the chain cannot find a new buyer.
“We are committed to continuing our business operations with minimal impact throughout the process and will endeavor to serve our customers with the high standard of care they have come to expect from us,” CEO Patrick Quinn wrote in a statement.
iPic, which operates a Los Angeles location in Westwood, offers luxury recliner seats, blankets and pillows and a dine-in menu that includes coconut shrimp, spicy ahi tuna on crispy rice and charcuterie boards. Tickets for “premium plus” seats at the Westwood location sell for $26, with midweek screenings for the same seats available at $23.
iPic’s bankruptcy comes at a time when even the largest theater chains have been fighting inconsistent box office grosses amidst changing audience viewing habits and a lower amount of theatrical releases from Hollywood studios due to rising production costs and industry mergers.
Despite the presence of high-profile films like “Avatar: Fire and Ash” and “Zootopia 2,” AMC Theaters reported a 10% decline in fourth quarter attendance leading to a $127.4 million net loss. Hopes that the 2025 domestic box office would see a significant improvement were dashed as it reached a total of $8.87 billion, just a 1.2% year-over-year increase.
But iPic’s struggle to draw an audience with its premium offerings predate the current industry-wide downturn, as the chain previously filed for bankruptcy in 2019 when domestic overall grosses passed $11 billion annually. Alabama’s pension fund rescued the company that time with a $221 million investment, only for theaters around the world to shut down due to the Covid-19 pandemic six months later.
