Studio Movie Grill has exited bankruptcy, it announced Wednesday, after filing for Chapter 11 in October due to effects of the COVID-19 pandemic.
In its Wednesday announcement, the Dallas-based, dine-in movie theater chain said that as it emerges from bankruptcy, it’s still operating 17 locations in five states, with plans to open two more in other states in the next six weeks. It operated 34 locations in 10 states prior to the pandemic. The company will also complete construction later this year on a 14-screen location in Georgia.
Additionally, CFO/COO Ted Croft, who’s been at the company for a decade, will take over as chief executive, replacing founder and former CEO Brian Schultz. According to the release, Croft has secured funding for the theater’s growth since 2011 and will now lead its profitability and sustainability as CEO.
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“This has been a challenging time for the industry and the brand,” Croft said in a prepared statement. “It’s a testament to Studio Movie Grill's founder, team members and our other stakeholders, that we’re standing here today delivering a best-in-class experience to folks getting out of their homes and safely back into theaters.”
It announced in January its Plan of Reorganization, which was approved at the end of March. The plan provided a creditors’ trust to manage liquidation of some assets and handle the company’s $50 million of contingent and non-contingent general unsecured debt. The petition for the bankruptcy was filed in the U.S. Bankruptcy Court for the Northern District of Texas in Dallas. At the time of the filing, Studio Movie Grill listed assets between $50 million to $100 million and liabilities between $100 million to $500 million.
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