© Spencer Platt/Getty ImagesRegal Cinemas stands closed on New York City’s 42nd Street, Aug. 6.
The second-largest cinema chain in America is likely to close indefinitely all its U.S. locations, after reopening in August, according to a person familiar with the plans, escalating the pandemic-driven crisis faced by the entertainment industry.
Cineworld Group CNWGY 12.82% PLC's Regal Entertainment Group's potential decision to suspend operations at its more than 500 locations follows a cascade of postponements for big-budget Hollywood films, most recently the coming James Bond title "No Time to Die." The studio behind the film, MGM Holdings Inc., on Friday said it was delaying the film for the second time, to next April, from this November. It had originally been scheduled for release in April of this year.
Cineworld is the second-largest movie theater operator on a global basis as well as in the U.S.
The plan to close the locations isn't definite, the person familiar with the situation said, and a final decision isn't likely until Monday or Tuesday.
Theaters in the U.S., the world's largest theatrical market, have endured historic levels of financial strain for months. After the coronavirus pandemic initially caused most U.S. cinemas to close in March, major chains like Regal, AMC Entertainment Holdings Inc. and Cinemark Holdings Inc. reopened in August, ahead of the spy film "Tenet," distributed by AT&T Inc.'s Warner Bros. The highly anticipated movie, from director Christopher Nolan, had been delayed repeatedly amid ongoing uncertainty about which theaters would be allowed to open.
But with only about two-thirds of domestic theaters able to open, thanks to varying state and local guidelines, and consumers apparently still wary of going to theaters, the $200 million movie grossed just $41.2 million in the U.S. and Canada through last weekend. That tepid performance has led Hollywood studios to recoil from releasing costly films for now.
Regal's potential decision to close its doors again, less than two months after reopening, is partially because theaters in major U.S. markets like Los Angeles and New York City have yet to reopen, the person said.
After witnessing moviegoers' subdued interest in "Tenet," Warner Bros. said it was moving "Wonder Woman 1984" to Christmas Day, from October. Walt Disney Co. quickly followed suit, shifting release dates on 10 titles, including bumping its Marvel spinoff "Black Widow" by six months.
The string of delays casts a shadow over the remainder of 2020's movie calendar and potentially over the entire theatrical industry. Last week, a cinema owners' trade group joined leading filmmakers in sending a letter to lawmakers in the hopes of drumming up financial relief for the ailing sector.
"If the status quo continues, 69% of small and midsize movie theater companies will be forced to file for bankruptcy or to close permanently," the National Association of Theatre Owners said in a written statement.
When America's major theater chains began reopening late this summer, they touted elevated sanitation protocols and capacity limits. Despite assurances they would be safe returning to theaters, U.S. moviegoers have proved reluctant. Without big-budget titles, theaters have largely been forced to screen smaller independent films and older movies.
Movie theaters abroad — many of which were allowed to reopen sooner as foreign nations fared better containing the coronavirus — have performed better than in the U.S. "Tenet" has grossed $243.7 million from international markets, according to Box Office Mojo.
On top of possibly closing the doors again at its more than 500 Regal theaters in the U.S., Cineworld is also considering closing its 127 locations in the U.K., according to the person with knowledge of the plan. Should the company proceed, the closures could affect the employment status of 45,000 workers, the person added. The Sunday Times in Britain earlier reported the potential closures.
For major movie theaters, suspending operations may be less costly than staying open with a limited supply of programming and little consumer demand.
Late last month, Cineworld, which is already shouldering a heavy debt load, released dismal midyear financial results. It reported revenue fell nearly 70%, to $712.4 million, in the six months ending June 30 when compared with the first half of 2019.
In states such as California and New York, theater owners large and small have expressed bewilderment as authorities have allowed some indoor establishments such as restaurants, bowling alleys and churches to open with capacity restrictions while requiring theaters keep their doors closed.
Reader Comments
So far we've lost sports, the symphony orchestras, music clubs, venues and festivals, live theatre, live spoken word, dance, film festivals, beef fests, street festivals, annual local fairs such as the Calgary Stampede and similar events nationwide, livestock fairs and the list goes on and fucking on.
The Haters are altogether quite a bunch, which we always surmised; now their ugliness is jammed in our faces at every God damned turn and we let those assholes get away with it all .