iPic-Gold Class Entertainment, Inc. (IPIC) has filed a Chapter 11 case in Delaware to sell its business through a “363” bankruptcy auction.
iPic is a Florida-based, publicly traded movie theater and restaurant company with 16 locations in 9 states that provide a “luxurious movie-going experience at an affordable price.” After achieving double-digit growth supported by its unique offering and market position, new market entrants and competitive pricing slowed iPic’s growth. But the company believes that its underlying business model remains strong, “bolstered by positive guest experience and loyalty.”
iPic is going forward with a “naked” auction at this time, with no stalking-horse bidder in hand. If a stalking-horse offer (e.g., opening bid) is presented before the auction, it may be possible to negotiate for typical stalking-horse protections such as expense reimbursements and break-up fees. iPic is seeking approval of a 90-day marketing process, with a proposed bid deadline of October 11, 2019 and closing by the first week of November. No minimum bid has been established. The company reports store-level EBITDA of $15.06 million for the year ended December 31, 2018, and $158.7 million in assets at book value.