Corporate Dispute Leads to New Luxury Movie Theater Chain Opening in Bethesda

In 2005, Hamid Hashemi was a leader in themovie theater industry, known for founding a company that built a chain of imaginatively themed theaters. In Maryland, for example, his Egyptian-themed 24-screen megaplex featured a statue of Anubis, the Egyptian god of the underworld.

By 2006, he was forced out of the company by the board of directors after a failed attempt to buy it. In subsequent litigation, he accused the board of breach of contract, while they accused him of making the company pay for his personal expenses. In his lawsuit, he also accused the board of devaluing the brand he had tried to build, replacing an upscale “Neiman Marcus” experience with one more akin to “K-Mart.”

Out of this unhappy conflict came a new ideaIPic theaters. Because his non-compete agreement with his old company prevented him from opening a theater near its locations, he began a new chain far away, in Milwaukee. That theater, and others that followed, including one in North Bethesda, offer a variety of amenities — push-button recliners with sliding iPads and small tables, high-end cuisine and cocktails, and waiter service during movies. Seats cost more than those in traditional movie theaters, but well-heeled customers seem willing to pay.

Because IPic is privately held, the company’s financial condition is unknown, and its spokesperson declined to comment on how much it had invested in North Bethesda. It has at least one local competitor in ArcLight Cinemas at the Westfield Montgomery Mall, which offers state-of-the-art movie technology and a cafe with haute cuisine. Still, IPIC seems to be prospering, with eleven locations nationwide and more on the way. Hashemi’s old company, meanwhile, had a brush with bankruptcy in 2009 and was sold to a larger company in 2013.

What seems like a crisis can sometimes be an opportunity, and a boardroom struggle can lead to new opportunities. The experienced business lawyers at Longman & Van Grack can help you plan ahead and deal successfully with corporate governance issues and with the challenges of starting a new business. Whether you are trying to resolve a dispute within your company or build something new, contact our Bethesda and Rockville, Maryland corporate and business law attorneys today for a consultation by calling (301) 291-5027.