Movie Theater Chain Files For Bankruptcy: How Chicagoland Location Will Be Affected

SKOKIE, IL — Cinemax Holding USA, which operates a movie theater at Westfield Old Orchard in Skokie, has filed for bankruptcy for the second time in five years.

The dine-in movie theater chain is based in Miami, Florida and operates 28 locations throughout the country, including CMX Old Orchard Luxury. The location offers reserved recliner seating and its menu includes beer, wine, cocktails and freshly made food.

Cenemax is one of the largest theater chains in the U.S., employing approximately 1,400 people.

According to Bloomberg News, the owner of CMX Cinemas movie theaters has assets that are estimated to be valued between $100,001 to $500,000 with less than $50,000 in estimated liabilities.

"During the restructuring process, CMX expects to operate its business and cinemas without interruption," the company said in a statement. "CMX continues to welcome customers to its cinemas as usual, and this will not change during the Subchapter V proceedings."

The owners of CMX Cinemas previously filed for Chapter 11 bankruptcy in 2020 due to the lull in foot-traffic during the COVID-19 pandemic. This time around, the owners haven't provided an exact reason for the Chapter 11 bankruptcy filing.

"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," the company said.

According to the United States Courts, Chapter 11 bankruptcy can be considered a "reorganization" bankruptcy. Usually, the company remains in possession of its properties, has the powers and duties of a trustee, may continue to operate its business, and may borrow new money with court approval.