VIP Cinema Seating, which employs 268 people in New Albany, has filed for bankruptcy.
No employees in New Albany will lose their jobs, said VIP spokeswoman Stefani Van der Voort.
VIP is the “leading manufacturer of luxury cinema seating in the world today,” according to the company.
It makes the luxury cinema seating in New Albany and can produce over 1,000 seats a day. The company has five state-of-the-art facilities in New Albany that total over 900,000 square feet.
The restructuring plan will strengthen VIP’s balance sheet, according to the company, which has corporate offices based in St. Louis, Mo.
“By eliminating $178 million of long-term debt and receiving $20 million in new capital, VIP is expected to emerge from the process as a stronger and more sustainable business that is better positioned to compete,” a company news release states.
The company believes it should emerge from the bankruptcy process by mid-April.
VIP Cinema CEO Michael Blatz said, “This is a positive and exciting time for VIP Cinema Seating, and we expect to move through the restructure in 45-60 days with no disruption to business, our employees, customers, vendors, or other business partners.”
Blatz added that, “New innovations will be launching throughout the year, starting with our breakthrough non-recliner chair introduction at CinemaCon. We will continue to provide our customers with the same high-quality goods and services while investing in product development, customer experience, marketing, sales operations and finance teams.”
Blatz said the company has also established a significant and growing presence in Europe and the Middle east.
“There are tremendous opportunities ahead for VIP, and this restructuring will allow us to invest in the brand and our products that will help our partners maximize their profits,” said Blatz. “We are excited to have this support, which further strengthens the company and our commitment to radically enhancing the customer experience.”