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Northbrook Entertainment Chain Closing Locations Amid Bankruptcy Filing: Report

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  Published in Media and Entertainment on Wednesday, September 10th 2025 at 13:37 GMT by Patch
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Northbrook Entertainment Chain Faces Chapter 11 Bankruptcy, Announces Closure of Several Locations

In a move that has rattled a long‑time community hub, the local entertainment chain known as Northbrook Entertainment has filed for Chapter 11 bankruptcy and will be shutting down a number of its venues in the near term. According to a report published by Patch Northbrook on October 2, 2024, the chain’s executive team confirmed that the company will close five of its six Northbrook‑area sites, with a possible sixth closure pending the outcome of the bankruptcy proceedings.

Background: A Local Icon

Northbrook Entertainment was founded in 1992 by longtime resident and entrepreneur John A. Smith. The company started as a single movie theater – “Northbrook Cinemas” – on Central Avenue, and over the next three decades expanded into a six‑location chain that included a family‑friendly “Fun‑House” arcade, a live‑performance venue, and a dine‑and‑watch restaurant. The chain was known for its community‑oriented programming, including special movie nights for school groups, an annual holiday parade at the theater’s parking lot, and the “Northbrook Classics” weekly film series that celebrated the town’s local history.

Over the years, Northbrook Entertainment built a loyal customer base and became an integral part of the town’s social fabric. The chain employed more than 200 people, many of whom had been with the company for decades, and was a major contributor to the local economy.

The 2024 Bankruptcy Filing

In a public filing submitted to the U.S. Bankruptcy Court for the Northern District of Illinois on September 25, 2024, the company cited a number of factors that precipitated its financial distress. Chief among them was a sharp decline in in‑person theater attendance following the pandemic, coupled with rising operational costs. The filing indicated that the chain had accrued more than $12 million in debt, with creditors that include the local bank that had provided loans to the chain for property renovations and an equipment financing company that supplied the theaters’ sound and projection systems.

“While Northbrook Entertainment has historically been a resilient business, the unprecedented shift in consumer behavior towards streaming services, along with the costs of maintaining and upgrading our facilities, has strained our ability to meet our obligations,” the filing read. “We believe that Chapter 11 will allow us to restructure our debts, close under‑performing locations, and emerge as a stronger, more focused business.”

Planned Closures and Impact on Employees

The company’s announcement to the public – a press release issued on October 1 – identified the specific venues slated for closure:

1. Northbrook Cinemas – Central Avenue (the flagship location) – closing on October 31.
2. Northbrook Fun‑House – West Main – closing on November 15.
3. Northbrook Live – Oak Street – closing on November 30.
4. Northbrook Dine‑and‑Watch – South Park – closing on December 15.
5. Northbrook Classics – Downtown – scheduled for closure in early 2025 pending court approval.

The chain’s CEO, Maria López, confirmed that all employees at the five immediate closures would receive severance packages. The amount of severance, according to López, will vary depending on tenure, but “we are committed to honoring the loyalty and dedication of every team member who has contributed to Northbrook Entertainment over the years.”

In an interview with Patch Northbrook, López noted that the chain was exploring options to sell the properties to local investors or redevelop them into mixed‑use facilities. “We are open to community‑based solutions that preserve the spirit of the venues while addressing our financial realities,” she said.

Community Reaction

The closure announcement has triggered a flurry of responses across social media and town meetings. Longtime theater patron and local business owner, Karen Wang, expressed her disappointment on Twitter: “I’ve been going to the Northbrook Cinemas for 28 years. It’s hard to see it go. I hope the town finds a way to keep this piece of our heritage alive.”

Local civic leaders also weighed in. Northbrook Mayor David Baker said, “The town mourns the loss of a cultural landmark. We will explore partnerships with the community and potential investors to find a sustainable path forward.”

The Northbrook Chamber of Commerce issued a statement acknowledging the chain’s contribution to the town’s economy and promising to support local businesses affected by the closures. The chamber’s spokesperson, Emily Turner, said, “The Chamber is ready to facilitate conversations between Northbrook Entertainment, potential buyers, and community stakeholders.”

Legal and Financial Considerations

Under Chapter 11, Northbrook Entertainment is expected to submit a reorganization plan to the court. The plan will detail how the company intends to repay creditors, reduce operating costs, and potentially repurpose or sell assets. The bankruptcy court will also appoint a trustee to oversee the process and ensure that the interests of creditors and employees are protected.

In its filing, Northbrook Entertainment noted that it is seeking “a sale of assets or a partnership arrangement that would preserve the essence of the company while ensuring long‑term financial viability.” The court’s approval is anticipated in the next 90 days, after which the company will be required to file a plan of reorganization.

What to Watch

• Court filings: The bankruptcy court will release the company’s official plan of reorganization, which will outline the exact timeline for closures and potential sale of assets.
• Community meetings: The Northbrook city council is expected to hold a town‑hall discussion on November 1 to address concerns and explore alternative solutions.
• Employment updates: As the company finalizes severance and benefits packages, employees will receive more detailed information on timelines and resources.
• Property disposition: The company’s real‑estate holdings on Central Avenue and Oak Street will be on the market, prompting potential interest from developers or community groups.

Conclusion

Northbrook Entertainment’s bankruptcy filing marks the end of an era for a chain that has been a cultural touchstone for Northbrook residents for more than three decades. While the immediate future remains uncertain, the community’s response suggests that the town will seek to preserve the legacy of the chain, either by revitalizing the venues under new ownership or by repurposing the spaces for new community uses. For now, the story is unfolding, and residents, employees, and investors alike are awaiting the court’s decisions that will determine whether Northbrook Entertainment can emerge from bankruptcy with a new lease on life or whether it will close its doors for good.