Studio Movie Grill Holdings, the theatrical chain where viewers can order Sriracha chicken sliders and the Cruzan mango mongo right in the middle of the latest blockbuster filed for bankruptcy after the Covid-19 pandemic stopped audiences.
This is another sign that the film industry is caught in a downward spiral, with people staying home to avoid contracting the disease and studios retaining new films that may appeal to them. The largest chain, AMC Entertainment Holdings Inc. said that may run out of money later this year or early 2021
“We plan to use this statement to strengthen our business by reducing liabilities and relocating SMG to create a stronger organization built for the future as we recover from the unparalleled impact of Covid-19,” Brian Schultz said in letter on the company’s website.
The epidemic forced SMG to temporarily close all its locations earlier this year. About a third of the company’s 33 theaters are still closed, according to its website; the others are open for work as usual, it says.
The secured lenders of the Dallas-based company have agreed to provide a new loan to support its restructuring, the letter said. Studio Movie Grill has assets between $ 50 million and $ 100 million and liabilities between $ 100 million and $ 500 million, according to the Chapter 11 petition.
The case is Studio Movie Grill Holdings LLC, 20-32633-sgj11, U.S. Insolvency Court for Northern Texas County (Dallas).