Hollywood Palms theater in Naperville has filed for bankruptcy and might soon be bought by a new operator.
But the theater, whose founder, Edwin C. "Ted" Bulthaup, was charged in December with evading sales taxes and use taxes, is "not shutting down," current management said Monday.
"We're having a great season. We are restructuring," said Alex Moglia, a corporate restructuring professional who is managing the theater at 352 S. Route 59. "The intention here is for the theater to continue to operate into the future."
Naperville Theater LLC, doing business as Hollywood Palms, filed a Chapter 11 bankruptcy petition in federal court Feb. 18, records show. According to the filing, the theater has roughly $800,000 in assets and $8.3 million in liabilities.
Hollywood Palms opened in September 2009 as a combination movie theater and restaurant offering dinner and a movie.
"It's such a good business that many people are interested in possibly buying the theater," Moglia said. "We already have an offer for the theater that we filed with the court."
According to a motion filed Friday, the potential buyer in a $1.4 million deal is Palms Acquisition LLC. A hearing on the sale is scheduled for Wednesday at the Dirksen federal court building in Chicago.
The bankruptcy filing comes about two months after Bulthaup was accused of owing the state more than $1.3 million in underreported taxes from the Naperville theater and from Hollywood Blvd. theater in Woodridge, which he owned and operated until Feb. 10, 2014.
Bulthaup said Monday he can't comment on the bankruptcy or whether he is still involved with the theater in Naperville.
An attorney handling the bankruptcy for Hollywood Palms did not return calls seeking comment.