Bankruptcy led to the closure of the second cinema chain in America

According to the film reporter of Fars News Agency, quoted by varietyRegal American cinema chain closed its 39 theaters due to bankruptcy.

Regal Cinemas, the second-largest movie theater chain in the United States, will close 39 theaters after parent company Cineworld filed for bankruptcy in September, according to legal filings obtained by Regal Cinemas.

Cineworld will refuse leases starting February 15. Amid a sharp decline in domestic box office sales during the Covid-19 pandemic, the monthly rent for each theater has increased nearly 30 percent from 2019 to 2022, according to the latest bankruptcy filing.

In total, the debtors estimate that rejecting the leases would save their properties $22 million annually, the document states. Any personal property of little value left at the premises will be abandoned.

Cineworld operates 747 complexes with 9,139 theaters in 10 countries, including approximately 500 of these theaters in the United States.

Movie theaters took a big hit during the coronavirus pandemic, with the 2022 domestic box office hitting $7.5 billion, down nearly 30 percent from $11.4 billion in 2019 before Covid.

The company posted a $3 billion loss in 2020 as many theaters remained closed, and a $708.3 million pretax loss in 2021. Net debt, excluding lease liabilities, was estimated at $4.84 billion, following these losses. Consecutively and after declaring bankruptcy, 39 main movie theaters in America will be closed and there is still the possibility of closure and more losses for this large chain of American cinemas and other collections.

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