The Regal UA Cortland Town Center in Mohegan Lake is one of 39 theaters in the Regal Cinemas chain that will be closed as part of the recent bankruptcy filing by Cineworld Group (OTC:CNNWQ), the chain”™s parent company.
According to a Variety report, Cineworld will reject the leases of the 39 theaters beginning Feb. 15. A combination in the Covid-19 pandemic”™s deleterious impact on the film exhibition industry coupled with the significant rent increases on the theaters ”“ a nearly 30% spike from 2019 to 2022 ”“ resulted in the decision to jettison properties.
“In total, the Debtors estimate that rejecting the Leases will save their estates approximately $22 million annually,” stated a bankruptcy document reviewed by Variety.
Cineworld operates 747 locations with 9,139 screens in 10 countries, with roughly 500 theaters in this country. Theatrical moviegoing has yet to regain pre-pandemic levels, with the 2022 domestic box office of $7.5 billion down by roughly 30% from the $11.4 billion in pre-Covid 2019. The pandemic wrecked Cineworld”™s finances ”“ the company recorded a $3 billion loss during when most theaters were and a $708.3 million loss before tax in 2021; its net debt, excluding lease liabilities, was $4.84 billion.
Within the region, the Regal chain also operates theaters in Fishkill Nanuet, New Rochelle and Poughkeepsie. The 11-screen Cortlandt Town Center opened in June 1998 as a replacement to the General Cinema Westchester 1-4, which was a successor to the UA Westchester Mall 4.
This part of the article is incorrect, “a replacement to the General Cinema Westchester 1-4, which was a successor to the UA Westchester Mall 4.” First, the two listed theaters were the same, and second the order is wrong. It was General Cinema to begin with and then became UA before the new theater was opened.