Regal Cinemas Shutting Down Nationwide
Regal Cinemas will close 39 of its locations in 20 states and Washington D.C.
The movie theater industry is in tremendous trouble. That has never been more evident following Regal Cinemas’ announcement of its plans to shutter nearly 40 locations nationwide. The news comes after Regal’s parent company, Cineworld, filed for bankruptcy four months earlier.
In response to the Regal Cinemas closures, Cineworld released a statement that expressed the strategy behind letting go of so many theaters at once. It said that it is doing so in hopes of cutting costs to salvage what is left of its business so that it can continue to remain operational. “The debtors are hopeful that these negotiations will lead to lease concessions and modifications that will obviate the need for rejection and enable additional theater sites to remain open,” read a portion of the statement.
The closures, which total 39, span from coast to coast and also include Regal Cinemas locations in Alaska and Hawaii. The latter states are only losing one theater each. Tikahtnu Stadium 16 in Anchorage, Alaska, and Keauhou Stadium 7 in Kailua-Kona, Hawaii are both slated to close.
Other states were not as lucky. A total of eight. locations will shutter in California, and New York will lose six. In California, Metro Point in Costa Mesa, Berkeley 7 in Berkeley, Parkway Plaza Stadium 18 and Imax in El Cajon, Escondido Stadium 16 and Imax in Escondido, Hemet Cinema 12 in Hemet, Sherman Oaks Galleria 16 in Los Angeles, and Yorba Linda and Imax in Yorba Linda are all shuttering their doors.
Most notably, New York is losing Union Square Stadium 14 in New York City. The other five closing locations include Elmwood Center 16 in Buffalo, Ithaca Mall Stadium 14 in Ithaca, Cortlandt Town Center in Mohegan Lake, Greece Ridge Stadium 12 in Rochester, and Transit Center Stadium 18 and Imax in Williamsville.
Sixteen other states and Washington D.C will also see Regal Cinemas closures. Those states include Colorado, Florida, Illinois, Massachusetts, Maryland, Maine, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Pennsylvania, Virginia, and Washington. According to CNN Business, the combined closures will save Regal Cinemas’ parent company approximately $22 million in operating costs.
After the dust settles, Regal Cinemas will have 500 remaining locations left open in the United States. And at this point, it remains unclear if or when any more locations will close or if this maneuver will allow Cineworld to stay afloat. The last-ditch effort to save the failing theater company comes after a failed acquisition by competitor AMC.
Similar to Regal Cinemas, AMC has also been struggling. This is even after it has had somewhat of a renaissance following the pandemic restrictions being lifted. AMC isn’t as cash poor as Regal’s parent yet, however, they are not free and clear of debt. AMC reportedly owes about $5 billion.
Both Regal Cinemas and AMC have attributed at least some of their woes to a lack of available content. The convenience of watching new movies from the comfort of their couches that people enjoyed during the height of the pandemic has not really fizzled even after movie theaters opened their doors once more. The future of Regal Cinemas and AMC is hedging on their ability to survive this industry-transforming period and find a way to adapt successfully to those changes.
