Despite the popularity of films like Top Gun: Maverick and Minions: The Rise of Gru, cinema attendance has not been as strong as the financial results may suggest. And after last week’s announcement that Regal Cinemas may have to file for Chapter Eleven bankruptcy, and their stock crashing, savvy moviegoers are becoming aware that Regal Cinemas is in serious financial danger. Are things not as good as people believed this summer?
For those wondering, we are still open and still welcoming guests to our theatres 🙂
— Regal (@RegalMovies) August 19, 2022
As ThatParkPlace reports:
Major movie theater chain, Regal Cinemas, watched as its stock crashed hard on Friday, only partially recovering to a 60% loss by the end of trading. The cause was simple but devastating: a declaration by its owner that the company may have to file for Chapter Eleven bankruptcy in the United States.
British company Cineworld Group said in a statement that a “voluntary Chapter 11 filing in the United States” was one of the options it was reviewing in an attempt to reduce its debt burden.Meanwhile, Cineworld and Regal theaters were open for “business as usual,” it added, and would remain so.“Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees,” the company said in the statement issued in response to reports last week.— Mark Thompson, CNN Business
ThatParkPlace also points out that now that summer is over, we’re entering the “graveyard season” of films. Nothing on the remaining schedule looks like it will bring audiences back to theaters. Even after a very positive summer, after Hollywood slowed down during the pandemic, there’s wasn’t enough inventory in the pipeline to even support a full year of movies for 2022. This is probably the biggest reason Regal Cinemas is considering such a drastic move.
Another problem they face, given the high inflation, ticket prices have managed to remain high, so that means even while movies are doing well in terms of the dollar signs they generate, it’s still unclear out on how many seats are being filled. Furthermore, the issue of to keeping the lights on is compounded by the demand for higher wages, and the difficulty in finding staff willing to remove mop those sticky theater floors is making it even more of a challenge to thrive.
Is there anything left on the release schedule of 2022 that you’re looking forward to?