AMC Theaters expected to file for bankruptcy

Brian Lutz
Store Manager
Store Manager
Posts: 1425
Joined: March 1st, 2009, 5:51 pm
Location: Piedmont Triad, NC
Been thanked: 56 times
Contact:
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by Brian Lutz »

Here in the Seattle area Regal is by far the largest theater operator, with AMC in second, and not much else in the way of competition. Cinemark has 5 scattered theaters in Washington, although 2 of those are in Lincoln Square in Bellevue, with one being a standard theater and one being a high-end theater with recliner seats and dining service). Galaxy has two theaters in WA (Monroe and Gig Harbor) and aside from a few scattered independents that's pretty much it. If the AMC theaters went away here it wouldn't have too much impact overall since their theater count is relatively low, but would leave Regal with a near monopoly in the Seattle area unless Cinemark picks up the closed AMC theaters.
babs
Assistant Store Manager
Assistant Store Manager
Posts: 762
Joined: December 20th, 2016, 3:08 pm
Has thanked: 19 times
Been thanked: 64 times
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by babs »

Brian Lutz wrote: April 16th, 2020, 3:08 pm Here in the Seattle area Regal is by far the largest theater operator, with AMC in second, and not much else in the way of competition. Cinemark has 5 scattered theaters in Washington, although 2 of those are in Lincoln Square in Bellevue, with one being a standard theater and one being a high-end theater with recliner seats and dining service). Galaxy has two theaters in WA (Monroe and Gig Harbor) and aside from a few scattered independents that's pretty much it. If the AMC theaters went away here it wouldn't have too much impact overall since their theater count is relatively low, but would leave Regal with a near monopoly in the Seattle area unless Cinemark picks up the closed AMC theaters.
Large multiplex theaters are nearly impossible to remodel into something else. They use concrete walls, sloped floors and just have really odd layouts. It's probably cheaper to rip them down. And usually they are used by landlords as traffic drivers for restaurants. Expect them to do whatever they need to do to replace them with another theater operator. However, the most likely outcome is for some PE group to merge them with Regal or someone else. Remember Regal is merged result of multiple bankrupt theater chains.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by storewanderer »

I cannot think of an example where a theater was converted to another ordinary retail use.

There is a former small UA over in Sparks that closed in the early 90's that was converted into a church.

They seem to always close.
Alpha8472
Posts: 3929
Joined: February 24th, 2009, 8:55 pm
Been thanked: 79 times
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by Alpha8472 »

www.cinematour.com has photos and histories of theaters from all over the world. Many theaters have converted to gyms and stores. San Francisco has many that are retail now. The Alhambra Theatre is now a fitness center. The Galaxy became retail for many years. The Varsity Theatre in Palo Alto became a Borders Books. There are many theaters in Los Angeles that are dollar stores.

Movie theaters can be transformed into retail. Sunvalley Mall in Concord used to have 2 large theater auditoriums and they are mall stores now. Those were the best times when malls had theaters. Malls used to be the place to hang out and meet people. Back in the 80s malls were the place to be.
Brian Lutz
Store Manager
Store Manager
Posts: 1425
Joined: March 1st, 2009, 5:51 pm
Location: Piedmont Triad, NC
Been thanked: 56 times
Contact:
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by Brian Lutz »

Another interesting one is a former 8-screen Regal theater (and a fairly short-lived video arcade) in the Bellevue Galleria development in Bellevue WA that only lasted about 9 years before closing, after which it eventually got turned into Bungie's corporate headquarters after they split off from Microsoft.
arizonaguy
Store Manager
Store Manager
Posts: 1107
Joined: July 12th, 2013, 6:07 pm
Been thanked: 35 times
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by arizonaguy »

Back to the original topic, AMC plans to raise $500 million in a private debt offering which should allow it to stay afloat for a bit longer, if the current easing of social distancing rules continues.

https://www.latimes.com/entertainment-a ... ers-reopen
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by storewanderer »

They need to be careful to reopen the cinemas too soon in the US (and anywhere else). Some weeks ago, China happily announced they were reopening the cinemas due to the virus cases falling in an attempt to make things look like they were returning to normal. About a week after that announcement, they announced the cinemas were all ordered closed again.

Frankly, I wouldn't go to a cinema anytime soon. The studios are already delaying release of a number of "hot" new movies. Even if the cinemas get to reopen, who will go to them? Will it even be profitable for them to operate?

At least they will get some cash flow.

Galaxy has been selling $25 gift cards with a free what looks like a 12 gallon bag of popcorn for $25 curbside a couple hours a day some days in an effort to get some cash flow.
Alpha8472
Posts: 3929
Joined: February 24th, 2009, 8:55 pm
Been thanked: 79 times
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by Alpha8472 »

AMC and other movie theaters are in a difficult situation. People will not want to go to a theater unless there is a cure or a vaccine. That could be over a year or more.

If only there were a theater where you be enclosed from other people. Or perhaps a theater where you never leave your car.

They should just bulldoze those theaters and build drive-in theaters. Drive-in theaters may be the wave of the future.
reymann
Personnel Manager
Personnel Manager
Posts: 279
Joined: August 13th, 2014, 8:25 pm
Been thanked: 28 times
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by reymann »

cinemas are certainly gonna hurt for at least the next year. i feel though some people are still gonna go to the movies when they reopen because the movie theater is always nice distraction from everyday life for a couple of hours. the theater model may need to become more of a hybrid of the physical theater and a pay-per-view app model for movies in the theater post coronavirus.
architect
Assistant Store Manager
Assistant Store Manager
Posts: 843
Joined: December 8th, 2015, 3:41 pm
Has thanked: 2 times
Been thanked: 7 times
Status: Offline

Re: AMC Theaters expected to file for bankruptcy

Post by architect »

Interestingly, in DFW, AMC and Cinemark are the dominant players, with Regal operating a more sparse selection of theaters around the market (mostly in lower-end areas). Their may be a bit of local bias here though, as Cinemark is headquartered in Plano, and most of their local theaters are run at a level indicative of that (recliner seating, upscale dining/concessions options, etc.). Studio Movie Grill is also headquartered in DFW, while Alamo Drafthouse also takes a substantial chunk of the indie market, so there is quite a bit of competition here. AMC's theater base is split down the middle from extremely upscale (Village on the Parkway in Addison, Northpark 15, etc.) to practically falling apart. However, if AMC was to liquidate, their would be at least a decent amount of their locations which would be picked up by other operators (particularly upscale mall/lifestyle center-based locations such as Northpark, Stonebriar, Firewheel, Grapevine Mills, and the Parks at Arlington, along with the aforementioned Village on the Parkway). This trend also tends to be the case in the other major Texas metros, with both Cinemark and AMC having a dominant market presence.

As far as converting theaters for other uses goes, this is much more difficult with modern theater buildings, as once the stadium seating foundations and concrete walls are removed, there is little useful building left behind. Older theaters were much easier to convert, as a lack of stadium seating allowed for drops in the concrete floors to simply be filled in.
Post Reply