Regal Cinemas plans to shut 39 movie theaters across the country in February, a move that would save $22 million annually, parent company Cineworld said in bankruptcy court documents.
Why it matters: The movie show business has been reeling from the pandemic, which cratered attendance, and can be competing with the explosion of streaming services.
Catch up fast: Cineworld filed for Chapter 11 bankruptcy protection in September and secured $1.94 billion in bankruptcy loans — referred to as debtor-in-possession financing — to support its restructuring plan, Axios’ Nathan Bomey reports.
The newest: Cineworld said in a court filing this week that it plans to reject 39 leases effective Feb. 15.
- A judge will now have to approve the list, which is routine for bankruptcy proceedings.
By the numbers: California is losing probably the most theaters with seven closings and Latest York has six theaters on the list, which was posted in court documents.
- Miami, Boston, Seattle and Washington D.C. are each losing a theater.
What they’re saying: Cineworld said in documents that has “commenced lively negotiations” with lots of its landlords.
- “The Debtors are hopeful that these negotiations will result in lease concessions and modifications that can obviate the necessity for rejection and enable additional theater sites to stay open,” the corporate said within the filing.
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