Regal to close six theaters in Southern California

Regal to close six theaters in Southern California

Want to catch up on “Talking Women,” “The Fabelmans,” or “Avatar: Water Road” before the Oscars?

Your list of places to go has shortened a bit.

Six Regal Cinemas theaters in Southland will close, according to a new filing the chain’s parent company, Cineworld Group, filed Tuesday as part of its bankruptcy proceedings.

Affected theaters include Sherman Oaks Galleria 16 in Los Angeles; Metro Point in Costa Mesa; Yorba Linda and IMAX at Yorba Linda; Escondido Stadium 16 and IMAX in Escondido; Hemet 12 Cinema in Hemet; and Parkway Plaza Stadium 18 & IMAX in El Cajon.

The Southern California locations are among 39 to make a “Leases to Be Rejected” list in the Cineworld presentation. The closures are expected to begin in February.

Theaters in Berkeley and Las Vegas will also be affected.

The actual outlets in Calabasas, Irvine, Anaheim Hills, and San Francisco have already closed, according to Insider, which was first to notice the closures.

Cineworld, the world’s second largest theater operator, filed for bankruptcy last September.

According to its latest filing, the firm is seeking an order authorizing it to reject unexpired leases on real property, as well as to “abandon certain equipment, fixtures, furniture, or other personal property” located there.

Cineworld reported $10.35 billion in net debt at the end of June.

The company said it had secured $1.94 billion in new financing to keep it going while it reorganized under Chapter 11 bankruptcy.

Cineworld’s legal representatives did not immediately respond to a request for comment.

The COVID-19 pandemic proved to be a difficult time for theaters which, like many other players in the events industry, struggled with lost revenue and no customers, as well as changes in opening times. of the blockbusters that generate money. The rise of streaming has also transformed where and how consumers watch movies.

Cineworld’s US theaters are “a major contributing factor to its current financial challenges,” the company wrote in its Tuesday filing. “Primarily due to the impact of deferred rental payments, the Debtors estimate that average monthly rental obligations per theater increased nearly 30% year-to-date in July 2022 compared to all of 2019.”

This isn’t Regal’s first rodeo. Following a period of overdevelopment in the 1990s, the chain filed for bankruptcy in 2001, only to emerge reorganized a year later.

Cineworld, a British company, later agreed to buy Regal in 2017 with a takeover deal that valued the chain at $3.6 billion.

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