Struggling movie theater chain files Chapter 11, may close
Before the Covid pandemic, my wife and I went to the movies at least a couple of times a month. In fact, part of the reason we opted to live in downtown West Palm Beach was that we could walk to a large movie theater.
That theater, a 12-screen operation owned by AMC, has actually closed.
The pandemic hurt movie theaters, and business has not rebounded fully, and it likely never will. Movie theaters were already facing growing competition from streaming and consumers having larger, nicer TVs to watch movies on at home.
AMC and Cinemark have both struggled to find viable business models, and now one of their largest rivals, IPIC Theaters, has filed for Chapter 11 bankruptcy protection.
The movie business has struggled
“The recovery has been much slower than people hoped,” Eric Handler, an exhibition industry analyst with Roth Capital Partners, told Variety, based on his analysis of North American box office and theater attendance trends.
“It’s been a struggle. You’ve had companies go out of business, and most of the major chains closed locations.”
- The North American box office in 2025 was about $8.6 billion, still 23-27% below pre‑pandemic levels from 2018‑19, according to data from Axios.
- U.S. box office revenue for 2024 was about $8.57 billion, down slightly from 2023 and well below 2019’s $11.4 billion, reported Box Office Mojo.
- According to S&P Global consumer research, the percentage of frequent movie‑goers (monthly attendance) has dropped 22 % since 2019 (indicating less regular demand).
- Cinema United’s latest theatrical exhibition data indicate millions fewer habitual movie‑goers than pre‑pandemic and evolving attendance patterns, even as some age groups attend more frequently.
"As theater seats gather dust and popcorn vendors idle, the data underscores a seismic shift in American entertainment habits: the allure of the multiplex is waning, supplanted by the effortless glow of home screens. The numbers paint a picture of quiet desperation for an industry once synonymous with cultural dominance," wrote Luke Bouma for Cord Cutters News.
Shutterstock
IPIC Theaters files Chapter 11 bankruptcy
IPIC Theaters clearly understands that movies alone could not drive a successful theater chain in 2026. The chain offers a differentiated dine-in experience, but that model has struggled, with both Alamo Drafthouse and CMX Cinemas, chains that offered movies and meals, recently filing for Chapter 11 bankruptcy.
Now, IPIC has also filed for Chapter 11 bankruptcy protection.
IPIC Theaters LLC, a luxury dine-in theater and restaurant brand, plans to pursue a sale of assets through voluntary Chapter 11 reorganization under the U.S. Bankruptcy Code in the Southern District of Florida, where it will seek approval of said sale. The company will continue to operate and conduct business pending a process to maximize value to all creditors.
The official filing can be found on PacerMonitor.
In connection with the filing, IPIC issued WARN notices to all employees. As part of this process, IPIC cannot guarantee employment beyond the notice period.
The company did share that it has enough cash to continue operations during an "expedited sales process," according to a press release.
"After exploring a range of possible alternatives, the company concluded that a court-supervised sale of assets is in the best interest of the company and its stakeholders," said CEO Patrick Quinn.
"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."
The company operates theaters in eight states, including Florida, Texas, and New York.
"IPIC Theaters shows the core problem: getting people off the couch is harder than ever. Home setups are better, releases hit faster, and convenience usually wins," Retail Nexus Media CEO Dominick Miserandino told TheStreet.
Recent movie theater bankruptcies and closures
- Cinemex Holdings USA, owner of CMX Cinemas, filed for Chapter 11 bankruptcy protection for the second time in five years as it evaluates restructuring and potential theater closures, according to PacerMonitor filings.
- Cinemaworld of Florida, operator of Majestic and CW theaters, filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Miami amid ongoing industry pressure, according to another PacerMonitor filing.
- AMC Theatres plans to keep closing underperforming theaters as part of a strategy to improve efficiency in a sluggish post‑pandemic box office environment, Bloomberg reported.
- AMC has shuttered more than 200 theaters over the past several years while evaluating leases and focusing on profitable markets, with more closures expected, Bloomberg added.
- Alamo Drafthouse filed for Chapter 11 bankruptcy protection and closed theaters, according to Nina Zdinijak at TheStreet.
Related: Huge pizza chain joins Pizza Hut in closing 100s of restaurants
