Long-struggling ride-simulation company Showscan Entertainment filed for Chapter 11 reorganization Wednesday in U.S. Bankruptcy Court.
The Los Angeles-based company, which has bled red ink in recent years, was pushed into the voluntary filing when a pair of Showscan-affiliated theater operators failed to pay a combined $5 million owed for ridefilms and theater systems, Showscan senior VP Russell Chesley said.
Traded over the counter as a penny stock, Showscan has yet to file its fiscal 2000 financial results. The company reported a loss of $4.2 million in the previous fiscal year, ended March 31, 1999.
“While the decision to file was a difficult one, it represents the best alternative for Showscan at this time,” CEO Dennis Pope said. “This filing will allow us to minimize the impacts on our day-to-day operations.”
Showscan’s simulation attractions operate in theme parks and other locations in 24 countries.