A BELOVED movie theater chain has filed for bankruptcy for the second time in five years.
The popular chain is aiming to restructure its business and has said that customers will feel as little impact as possible.
A beloved movie theater chain has filed for bankruptcy for the second time in five years[/caption]
Cinemex Holdings USA Inc., known as CMX, is a Miami-based chain with 28 locations across eight states in the US.
CMX has entered Chapter 11 bankruptcy proceedings for the second time in five years, it announced on July 1, which CMX has dubbed “Subchapter V proceedings”.
The company filed in the U.S. Bankruptcy Court for the Southern District of Florida.
This is to “position the company for long-term growth”, according to a press release.
CMX will be evaluating its lease portfolio and negotiating improved lease terms.
While it does this, CMX has promised that moviegoers will feel little impact.
The press release continued: “CMX currently anticipates emerging from Subchapter V during the first part of the third quarter of 2025 and is confident that a comprehensive financial restructuring is in the best interests of CMX, its stakeholders, and business partners overall.
“In addition, CMX expects employees will continue to receive their usual wages and benefits without interruption.
“CMX’s available cash reserves, along with cash generated by operations, are expected to provide sufficient liquidity to meet ongoing obligations—including post-petition payments to vendors and suppliers, as well as wages, salaries, and employee benefits.”
The release also states that the company expects to emerge from Chapter 11 in the third quarter of the 2025 fiscal year.
CMX had previously filed for bankruptcy in April 2020 due to the COVID-19 pandemic.
The company then emerged from bankruptcy in December of the same year.
LIQUIDATION SALES
Factory Mattress is currently holding a massive 80% liquidation sale as it prepares to go out of business for good.
The furniture chain, solely based in Austin, Texas, has only four active stores running.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
Factory Mattress filed for Chapter 11 on June 7.
As a result, it will be shutting all four of its locations in the city.
Factory Mattress sells several big brands, like Nextar, Lovett and Smartlife.
You can get massive savings on stock right now as the stores prepare to wind down business
It is not known why the chain is closing, however.
There is also no known timeline for when the stores are going, so if you want to save, you need to do so as quickly as you can.
Cinemex Holdings USA Inc., known as CMX, is a Miami-based chain with 28 locations across eight states in the US[/caption]
