Popular Florida Arcade Files for Bankruptcy

Photo bycanna

FunDimension, a family-friendly arcade and entertainment venue in Miami's Wynwood Arts District, has filed for Chapter 11 bankruptcy in hopes of restructuring its business. The arcade, which has been a popular spot since opening in 2017, submitted its petition on October 4 in the U.S. Bankruptcy Court for the Southern District of Florida.

Founded by Miami entrepreneur Joyce Alarcon-Frohman, FunDimension offers a mix of indoor and outdoor entertainment for families. But in recent years, the business has hit some financial hurdles. According to the 45-page bankruptcy filing, the company owes nearly $1.8 million, while its assets are valued between $500,000 and $1 million.

One major hit came in 2023 when local fire code changes forced FunDimension to close its four-story indoor playground, a big draw for children’s birthday parties. They tried to pivot by adding bowling lanes, but the construction costs and additional debt—over $240,000—pushed them deeper into financial trouble. The arcade was also impacted by the expiration of a noise permit that had allowed them to host late-night events, a popular feature in Wynwood. Without that permit, they lost a significant chunk of their revenue.

The company’s largest secured creditors include West Town Bank & Trust, which is owed over $940,000 for arcade games and equipment, and Leaf Capital Funding, owed $216,489 for the bowling lanes. FunDimension also has unsecured debts to the U.S. Small Business Administration, American Express, and Citibank, among others.

Despite these challenges, FunDimension has reported $2.67 million in revenue so far this year—though that’s down from $3.23 million in 2023 and $3.68 million in 2022. The arcade says it plans to cut expenses and work with its lenders to restructure its debt so it can keep operating through the bankruptcy process.

For now, the team at FunDimension is hopeful they’ll find a way to keep the fun going while navigating their financial recovery.