Studio Movie Grill Cinema Chain Files For Chapter 11 As Exhibitors Stagger Under COVID-19 Woes

Studio Movie Grill Studio Movie Grill , the in-theater dining chain with seven California locations has filed for bankruptcy, one of the first leading exhibitors to officially buckle under pandemic-related financial stress. The Dallas-based company filed for Chapter 11 in U.S. Bankruptcy Court for the Northern District of Texas. It will continue to operate but reorganize with the protections allowed to renegotiate with lenders, landlords and creditors. According to court documents, the privately-held 33-theater circuit founded in 1993 by CEO Brian Schultz had estimated assets of $50-$100 million and estimated liabilities of $100-$500 million.

The board met and decided on Oct. 14 that Chapter 11 was it’s best option. It filed on Sunday. Oct. 23 after reached an agreement ahead with secured lenders to support its restructuring through financing and on the terms of a plan that it said will provide a sustainable path forward. “We plan to use this filing to strengthen our business by reducing liabilities and reposition SMG to emerge a stronger organization built for the future as we recover from the unparalleled impact of COVID-19. We intend to move through the process as quickly as possible,” Schultz said. He emphasized the theaters remains open for […]

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