×
You will be redirected back to your article in seconds

Regal retreats from Gotham

Exhib eyes reorg as UA takes over NY leases

NEW YORK — Ailing Regal Cinemas, the nation’s largest exhib, has pulled out of the Gotham market into which it had entered with much fanare a year ago.

The exhib has extricated itself from a handful of leases that have been taken up by smaller competitor United Artists. The theaters include a state-of-the-art multiplex in Battery Park City in Manhattan as well as locations in Astoria, Queens; Brooklyn; and North Bergen, N.J. Three of the locations were built about a year ago. The Astoria theater is slightly older.

“We worked out a mutually agreed upon lease termination with our landlord” — in this case, big New York developer Forest City Ratner — said Regal spokesman Dick Westerling. Move is part of an ongoing restructuring as Regal and other exhibs seek to cut costs and pare down their screen totals.

“New York is an important market to us, and we wanted to continue to focus on the five boroughs,” UA topper Kurt Hall told Daily Variety. UA’s Gotham properties include the high grossing United Artists Union Square.

As the exhibition biz has buckled under crushing debt and red ink, theater owners have focused on ways to rid themselves of leases on underperforming locations. Landlords, as in this case, will turn the leases over to other exhibitors who feel they can run a location more profitably.

In other instances, landlords may avoid long-term leases in favor of short-term agreements, taking a cut of the revenue as they explore other uses for a property.

In any case, Regal and UA may soon be part of the same family.

Anschutz plan

Regal is reportedly working with entertainment entrepreneur Philip Anschutz on a pre-packaged bankruptcy reorganization filing. Anschutz took control of UA earlier this year and has also snapped up several other exhibitors.

Regal is expected to file for Chapter 11 bankruptcy before Labor Day, with Anschutz likely to gain formal control of the circuit in subsequent court proceedings.

More Film

  • Francois Ozon's 'The Grace Of God'

    Francois Ozon's 'By The Grace Of God' Delivers Strong B.O. Opening in France

    Rolling off its triumph at the Berlin Film Festival where it won the Silver Bear, François Ozon’s Catholic church sexual abuse drama By “The Grace Of God” had a strong theatrical bow in France where it sold nearly 50,000 tickets on 290 screens on Feb. 20, its first day out One of the best opening [...]

  • David Oyelowo Peter Rabbit 2

    David Oyelowo Joins the Cast of Sony's 'Peter Rabbit' Sequel (EXCLUSIVE)

    Golden Globe nominee David Oyelowo is set to join the cast of Sony Pictures’ “Peter Rabbit 2,” the live-action hybrid sequel to the 2018 family hit, sources tell Variety. He joins Rose Byrne and Domhnall Gleeson, who are returning from the first film, as is James Corden in the voice of the mischievous Peter Rabbit. [...]

  • Luke Wilson Zombieland 2

    Luke Wilson Joins 'Zombieland' Sequel (EXCLUSIVE)

    Luke Wilson is set to join the ensemble of the upcoming “Zombieland” sequel, sources tell Variety. Wilson will star alongside Woody Harrelson, Jesse Eisenberg, Emma Stone, and Abigail Breslin in “Zombieland 2.” As previously reported, Zoey Deutch, Thomas Middleditch, and Rosario Dawson are also boarding the cast. In the sequel, the zombie slayers must face [...]

  • Awards Season Mens Fashion Harry Shum

    Men's Fashion Is Changing Things Up This Awards Season

    The standard black tuxedo men donned to awards shows for decades is quickly becoming an outmoded uniform. From bold colors, to striking textures, to novel silhouettes, men’s awards show looks are now just as fashion-forward as women’s. “It was a slow evolution and then a really quick evolution,” says Ilaria Urbinati, who styles Rami Malek, [...]

  • Montage Los Cabos Queen Kapiolani Hotel

    Where to Relax After Awards Season, From Mexico to Hawaii

    Sundance and the Grammys. Here’s where to trip a little light fantastic and celebrate in style, forget disappointments and, best of all, reconnect with loved ones or yourself. FAMILY GETAWAYSDisney magic: Grand Californian Hotel & Spa, Disneyland, Anaheim, Calif. The Disneyland Resort is expert at handling VIPs and the 948-room Grand Californian is its hotel [...]

More From Our Brands

Access exclusive content