Studio Movie Grill Holdings, the theater chain where film-goers Sriracha can order chicken sliders and Kruzen mango mojo, right in the middle of the latest blockbuster, filed for bankruptcy on Friday after the Kovid-19 epidemic.
This is another sign that the film industry is stuck in a downward spiral, people have to stay home to avoid catching the disease, and studios are catching up on new films that may attract them. Largest chain, AMC Entertainment Holdings Inc., has stated It may run out of cash by the end of this year or early 2021.
Recovering from the unique impact of Choice-19, we plan to use this filing to reduce liabilities and restructure SMGs in order to emerge a strong organization built for the future. Brian Shultes said that Letter on company website.
The outbreak forced SMG to temporarily close all of its locations earlier this year. About a third of the company’s 33 theaters are still closed according to its website; The rest of the business is open as usual.
The secured lender for the Dallas-based company agreed to provide a new loan to support its restructuring, according to the letter. Studio Movie Grill has liabilities between $ 50 million and $ 100 million and $ 100 million and $ 500 million according to its Chapter 11 assets.
The case is Studio Movie Grill Holdings LLC, 20-32633-sgj11, US Bankruptcy Court for the Northern District of Texas (Dallas).