With movie theater attendance on the downhill, VIP Cinema Holdings – the largest reclining theater seat producer in the US – is set to file Chapter 11 bankruptcy. The decrease in movie sales has effected the lifetime of recliners, meaning large projected replacement of the recliners has not happened, almost halting business. The reorganization, with court approval, would put 51% stake of the company in the procession of H.I.G. Capital; this equity transition would ultimately eliminate $178 million of VIP Cinema’s long-term debt.
VIP originated in New Albany, Mississippi in 2008 as a residential furniture company, but has since relocated to St. Louis and expanded interests into the commercial movie theater sector, holding 70% of the luxury movie theater reclining industry. VIP hopes to emerge from bankruptcy by mid-April, while preserving 373 jobs.
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