Prior to COVID-19, the growing Studio Movie Grill was a revolutionary concept in the movie theater industry. Then the pandemic happened. Founded in 1993 in Dallas, Texas, the chain grew to over 300 screens in 10 states heading into 2020. It started with he Granada Prestonwood Theater in Dallas which offered guests five movie screens and private luxury boxes. They even had valet parking. It eventually grew into a successful chain and a concept that was growing legs all over the country.
Even AMC took notice, opening several “dine-in” movie theaters of their own, including four theaters in north and central New Jersey.
Today, Studio Movie Grill announced it is filing for chapter 11 bankruptcy.
“Today, we announced that Studio Movie Grill (“SMG”) filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code. Prior to its filing, SMG reached an agreement with its secured lenders to support its restructuring through financing and an agreement regarding the terms of a plan that will provide a sustainable path forward for our dine-in theater chain,” the company said in a statement. “We plan to use this filing to strengthen our business by reducing liabilities and reposition SMG to emerge a stronger organization built for the future as we recover from the unparalleled impact of COVID-19. We intend to move through the process as quickly as possible.”
The company will continue business as usual during the restructuring process. Studio Movie Grill is open for business as usual.
“We will continue to operate with our same standards of excellence and safety,” the company added. “Your Studio Movie Grill gift cards will continue to be valid and retain their value. We remain committed to continuing to provide exceptional and safe guest experiences for the communities we serve.”
“Our guests can be assured that, during the Chapter 11 process, SMG is fully committed to continuing to offer great service, and simple, safer ways to enjoy movies and meals in a welcoming environment in support of the future,” the company said.