asset sale - News - The Coastal Star2024-03-29T01:23:17Zhttps://thecoastalstar.com/profiles/blogs/feed/tag/asset+saleDelray Beach: iPic changes hands in bankruptcy court; local execs resignhttps://thecoastalstar.com/profiles/blogs/delray-beach-ipic-changes-hands-in-bankruptcy-court-local-execs-r2019-12-04T16:28:04.000Z2019-12-04T16:28:04.000ZThe Coastal Starhttps://thecoastalstar.com/members/TheCoastalStar<div><p><strong>By Jane Smith</strong><br /> <br />Hamid Hashemi and three other men resigned from their executive positions with iPic Entertainment on Nov. 15.<br /> It was the same day that its lender gained control of the iPic luxury theater chain through an affiliate, iPic Theaters.<br /> The new company operates iPic theaters in 15 cities and remains based in Boca Raton. The lender, Retirement Systems of Alabama, canceled the lease Oct. 31 for headquarters office space in its new theater building in Delray Beach, now called 4th & 5th Delray. <br /> In 2015, Hashemi had promised to move the company’s headquarters to Delray Beach. He persuaded city leaders to approve his project with a promise of higher-paying jobs in Delray Beach.<br /> Also, on Oct. 31, RSA canceled the lease for the corporate apartment in Boca Raton.<br /> The changes were allowed because RSA had made the winning bid for the iPic assets in bankruptcy court, offering $51.8 million. The luxury movie theater chain had filed for bankruptcy court protection on Aug. 5 in Delaware, when it was crumbling under a $220 million debt load to RSA.<br /> When iPic began in 2010, Hashemi had a novel approach to movie theaters by providing reclining seats and food service. Soon, competitors began providing the same luxury movie-watching experience. <br /> In addition, fewer people were going to the movies, preferring to stream movies in the comfort of their homes.<br /> In Delray Beach, a complex of eight iPic theaters opened in March. Its pod seating allows two people to sit together, perfect for date nights but not for a group of friends. Even with the membership program, people must pay about $26 for a movie ticket on weekends. <br /> RSA has no comment at this time, spokeswoman Michelle Soudry said via email. The publicist for the 4th and 5th Delray building owners did not respond to an email seeking comment. <br /> In bankruptcy court, the new company paid $78,000 of the $135,947 owed, or 57%, for theater space in Delray Beach, according to a Nov. 18 filing.<br /> In Boca Raton’s Mizner Park, landlord Brookfield National Properties received nearly $42,966 of the $79,107 owed, or 54%, for office and theater space, also filed on Nov. 18.<br /> Separately, the 4th and 5th Delray building owners asked for parking and valet sign approval on Nov. 13 from the city’s Site Plan Review and Appearance Board. <br /> The owners need to remove two sandwich-board signs directing customers to the valet stand and 90 public parking spaces in its garage, which also serves iPic customers and office users.<br /> Retailers and office building owners are not allowed to use those signs in Delray Beach, said Mark Denkler, chairman of the city’s Parking Management Advisory Board. Only restaurants can use them to show their menus, he said.<br /> Delray Beach is working on a “wayfinding sign” program to show the location of public parking lots and garages, museums, shopping, etc. In December, some sign options will be shown to the city’s Community Redevelopment Agency board.<br /> Consequently, the SPRAB members approved 4-foot-tall orange signs for the valet and public parking. The signs project out from the building by nearly 6 feet and will be attached at the bottom of the second floor. <br /> The word “Valet” will be used and a capital P for the public parking. The white letters will be outlined in dark brown. The double-sided signs will be illuminated at night.</p></div>Delray Beach: Alabama pension funds buy iPic’s assets, plan to keep headquarters in Bocahttps://thecoastalstar.com/profiles/blogs/delray-beach-alabama-pension-funds-buy-ipic-s-assets-plan-to-keep2019-10-30T17:57:34.000Z2019-10-30T17:57:34.000ZThe Coastal Starhttps://thecoastalstar.com/members/TheCoastalStar<div><p><strong>By Mary Hladky and Jane Smith</strong></p>
<p>Less than three months after filing for Chapter 11 bankruptcy protection, iPic Entertainment has emerged from the legal process in the arms of its largest creditor.<br />Delaware U.S. Bankruptcy Judge Laurie Selber Silverstein on Oct. 28 approved the sale of iPic’s assets for $51.8 million to an affiliate of the Retirement Systems of Alabama, which has loaned iPic about $220 million, Law360 reported. The sale is to close this month. <br />The affiliate, iPic Theaters, was the top bidder for the luxury theater chain’s assets at an Oct. 17 bankruptcy auction.<br />It beat out a competing $48.8 million bid by Cinemex Holdings USA, a subsidiary of Mexican movie theater operator Cinemex, which opened its first U.S. theater in Miami in 2016.<br />IPic’s 16 theaters, including in Delray Beach and Boca Raton, are expected to continue operating for now, but the long-term picture is less clear.<br />IPic attorney Jeffrey Pomerantz said RSA will keep open at least eight of the chain’s theaters and could continue developing six more sites, according to the Law360 Oct. 28 report. Those sites include planned theaters in Fort Lauderdale and Sunrise, according to filings in the case.<br />But the chain’s headquarters will not move to Delray Beach as long promised. RSA wants to keep it in Boca Raton, where it has been located since iPic was launched in 2010.<br />That is a blow to Delray Beach city leaders, who had conditioned approval of the construction of a downtown iPic on the headquarters move, and to the city’s business leaders, who wanted to score another corporate headquarters for the city.<br />An RSA spokeswoman declined comment. Two publicists for iPic founder and CEO Hamid Hashemi did not respond to emails.<br />The Delray Beach iPic opened in March after six years of wrangling with the city.<br />One week after iPic Entertainment filed for bankruptcy protection on Aug. 5, Hashemi lamented the time it took to complete negotiations with the city and build the theater, causing cost increases.<br />The theater project, now known as 4th and 5th Delray, includes office space, retail and a parking garage just south of Atlantic Avenue between Southeast Fourth and Fifth avenues.<br />IPic paid $3.6 million for 1.6 acres in April 2017. A few weeks earlier, a new entity called Delray Beach 4th and 5th Avenue paid $2.3 million for .14 acres to provide a loading zone.<br />The same day the 1.6-acre sale closed, Hashemi’s Delray Beach Holdings sold the land to Delray Beach 4th and 5th Avenue.<br />That entity has a joint venture partner in Boston and an investor partner in Los Angeles. Hashemi retained a small stake.<br />In contrast, the construction of a theater and adjacent Tanzy Restaurant in Boca Raton’s Mizner Park in 2012 generated no controversy. IPic’s headquarters also is in Mizner Park.<br />IPic offered a new concept: luxury theaters with reclining seats, quality food and drinks brought to patrons, and pillows and blankets.<br />The chain planned to grow to 25 theaters in the U.S. and to expand to Saudi Arabia. Its third Florida theater is in North Miami Beach.<br />But since iPic was formed, theater-going has decreased as people opt to stream movies at home. At the same time, larger chains copied iPic’s dine-in option and reclining seats.<br />IPic’s revenues declined in the first quarter of this year. On July 1 it missed a $10.1 million interest payment due to RSA.<br />Shortly after it sought bankruptcy protection, its stock was delisted on Nasdaq and traded over the counter at about 40 cents per share.<br />In recent documents in the bankruptcy case, landlord Delray Beach 4th and 5th Avenue said it is owed about $135,947 on its theater lease.<br />IPic’s Boca Raton landlord, Brookfield National Properties, said it is owed $79,907.<br />IPic disputed those amounts. A bankruptcy court hearing is set for Nov. 13 to resolve these and other remaining disputes.<br />Brookfield also objected to RSA’s assumption of the lease and asked for more information about its experience with theaters and restaurants and its financial health.<br />But in her order, Judge Silverstein said RSA had provided adequate assurance that it could operate the theaters.</p></div>