Newark, Del. — Theater Xtreme Entertainment Group, a franchiser of front-projection-based home-theater stores, has filed for bankruptcy under Chapter 7.
The business, which also operated two company-owned stores, had suspended operations Dec. 2 due to insufficient funds, citing the economic environment and tight credit and capital markets.
The bankruptcy is not expected to affect the 11 Theater Xtreme franchised stores located across the country. One owner, who asked to remain anonymous, told TWICE that the franchisees will continue to operate their businesses as independent mom ’n pop stores, and that Theater Xtreme had only provided the concept and name.
The only change, he added, is that he no longer has to pay the 4 percent royalty fee.