US-based luxury theatre-and-restaurant destinations operator IPIC Entertainment has voluntarily filed for Chapter 11 Bankruptcy and will pursue sale or reorganisation.

The company has started the proceedings under the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware to facilitate its plan. The company aims to emerge out with a healthy balance sheet and a new capital structure.

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The company is currently in talks with numerous parties to complete a comprehensive financial restructuring.

According to IPIC, financial restructuring will further allow it to enhance its theatres and dining experiences, as well as continue with its expansion plans.

IPIC Entertainment founder and CEO Hamid Hashemi said: “To ensure an exciting future for IPIC for the benefit of our guests, members, employees and other partners, we have hired top consultants and advisers to find a partner who shares our vision.

“Our brand is thriving and leads the industry in popularity but our balance sheet needs to course correct. Our theatres will remain open during this transition, our employees are being paid, as are our vendors and suppliers.”

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In addition, IPIC Entertainment’s current management will continue with the company and work collaboratively with its restructuring advisers.

The restaurant chain has also received a commitment for a debtor-in-possession (DIP) financing from Retirement System of Alabama to support its operations. IPIC expects to conclude the restructuring process in 90 to 120 days.

Pachulski Stang Ziehl & Jones is serving as legal counsel, Aurora Management Partners as financial adviser, and PJ Solomon as investment banker to IPIC.