Studio Movie Grill (SMG), the dine-in movie theater chain with a location in Monrovia, filed for Chapter 11 bankruptcy protection at the end of October.
The Dallas-based company filed in U.S. Bankruptcy Court for the Northern District of Texas. According to the Houston Business Journal, the main petition “lists assets between $50 million and $100 million and liabilities between $100 million and $500 million.”
Prior to its filing, the company reached an agreement with its secured lenders to support its restructuring through financing and an agreement regarding a sustainable path forward, according to a press release. Theaters will remain open during this restructuring process but the company plans to close certain locations.
“Our restructuring demonstrates our commitment to SMG’s future and to welcoming back our 7,000 plus treasured team members as we strive to preserve our mission to open hearts and minds, one story at a time,” said Brian Schultz, founder/chairman of Studio Movie Grill.
“Our guests can also be assured that we have always been, and will continue to be, committed to your safety and have the resources to do so. During the Chapter 11 process, SMG is fully committed to continuing to offer great service, and a simple, safer way to enjoy movies + meals in a welcoming environment in support of the future of theatergoing. Film and all creative arts are an integral and powerful part of the joy of the human experience, a way for us to better understand the lives of those around us and to come together, which we cannot afford to lose.”
The company will file its reorganization plan in December. A market test will also be conducted during this time to ensure SMG can exit bankruptcy in early 2021. The market test is used primarily to determine the value of SMG and part of this review is filing a Sale and Bidding Process motion. This motion establishes a procedure to canvas the market and determine potential values that exceed the proposed reorganization plan value.
Studio Movie Grill’s locations in Los Angeles County remain closed as the area remains in the state’s most restrictive tier on the blueprint for reopening business sectors during the COVID-19 pandemic.
On Tuesday, the Los Angeles County Department of Public Health reported that the county is experiencing a surge in COVID-19 transmission. From mid-September to late-October, new reported cases went from a little over 750 cases per day to almost 1,400 cases per day. Over the weekend, Public Health reported for Saturday and Sunday, a total of 4,656 cases; 2,418 new cases for Saturday and 2,238 new cases for Sunday.