Miami-based CMX Cinemas, which operates 16 theaters across Florida, has filed for Chapter 11 bankruptcy protection.
The filing in the United States Bankruptcy Court for the Southern District of Florida allows CB Theater Experience LLC, CMX Cinemas LLC, and Cinemex Holdings USA Inc. to continue operating their movie theaters.
The owners of CMX Cinemas previously filed for Chapter 11 bankruptcy in April 2020 due to the COVID-19 pandemic, but successfully emerged from bankruptcy protection in December of that year.
What is Chapter 11 bankruptcy?
According to the United States Courts, Chapter 11 bankruptcy is frequently referred to as a “reorganization” bankruptcy.
“Usually, the debtor remains ‘in possession,’ has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money,” the website states. “A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.”
Why is CMX Cinemas filing for bankruptcy?
The exact reasons for the filing are unknown.
“CMX, with the support of its secured lender, will seek to reduce its obligations, strengthen its balance sheet, and restructure its business while protecting its employees and emerging in a stronger and more viable long-term financial position to continue serving customers across the United States,” according to a press release from the company.
The company listed assets between $50 million and $100 million, with liabilities ranging from $1 million to $10 million. A press release says 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.”
See all 16 CMX Cinema locations in Florida
Is CMX Cinemas closing its Florida theaters?
As of July 2, all of its theaters are still operating and they have not announced any closures. In the filing, it says CMX expects to operate its business and cinemas without interruption.
“CMX continues to welcome customers to its cinemas as usual, and this will not change during the Subchapter V proceedings. CMX expects to continue honoring the terms of all existing customer membership programs, including CMX Rewards and CMX Passport.”
This article originally appeared on Naples Daily News: CMX Cinemas files for bankruptcy. What that means for its 16 Florida theaters
Reporting by Samantha Neely, USA TODAY NETWORK – Florida / Naples Daily News
USA TODAY Network via Reuters Connect
