Twelve new Regal Theaters have been closed as Regal’s parent company files for Chapter 11 bankruptcy. These locations include Anaheim Hills 14, Calabasas Stadium 6, Westpark 8 in the Los Angeles market; Crow Canyon Stadium 6 in the San Francisco area, the Broadway Faire in Fresno, CA; Richland Crossing Stadium in the Philly area, Parkway Plaza Stadium 12 in the Seattle-Tacoma market, Greenville Grande Stadium in North Carolina, Middleburg Town Square Stadium 16 in Cleveland-Akron, Sherwood Stadium 10 in Portland, OR, Colonnade Stadium 14 in Las Vegas, and the Amarillo Star Stadium 14 in Texas. Some analysts believe these venues represented undesirable locations or had leases up for renewal, but none were a total surprise. Cineworld has already asked to court to reject 20 additional leases across the U.S. to save approximately $12 million. A judge recently granted them access to “$785 million in a financing facility so that they meet ongoing obligations to vendors, suppliers, employee salaries and benefits.” Theaters are expecting several more years of pandemic levels.
“Even though leases are rejected in a Chapter 11 filing, that doesn’t mean Regal has completely abandoned the properties; they could still work out a deal with the landlord.”
Unloading the leases would save the Cineworld estates about $12 million, “reduce high fixed operating costs and better position the Debtors to conduct competitive operations going forward,” the filing said.
– Excerpt from an article for Deadline by Anthony D’Alessandro, Jill Goldsmith. Read the full article here.
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