An iconic movie theatre now files for an unexpected bankruptcy in order to reorganize its business affairs, sources report.
Iconic movie theater chain Metropolitan Theatres Corp. has filed for Chapter 11 bankruptcy protection to reorganize its business affairs, which will include restructuring and possibly rejecting theater leases, company president David Corwin wrote in a bankruptcy declaration.
The Los Angeles-based movie theater chain on Thursday February 29 filed its Subchapter V bankruptcy petition in the U.S. Bankruptcy Court for the Central District of California in Los Angeles listing about $26.5 million in assets and liabilities.
The debtor said in court papers that the financial distress caused by the temporary closures of theaters during the Covid-19 pandemic in 2020 continued after theaters reopened as the in-person movie-viewing business remained slow in the ensuing years.
Unfortunately, the slowdown in theater business coupled with significant lease obligations and business expenses negatively impacted the company’s financial stability, reports TheStreet.
The company in 2022 also shut down two poorly performing theaters in Aspen, Colorado and in Hailey, Idaho, to reduce its losses.
Movie industry labor disputes between May 2 to November 9, 2023, which led to strikes by the Writers Guild of America and Screen Actors Guild-American Federation of Television and Radio Artists, also put further strain on the theater business, the debtor said in court papers.
Domestic box office sales are expected to drop 11% in 2024 from 2023 levels due to fewer film releases, reports TheStreet.
Metropolitan Theatres was founded in Los Angeles in 1923 during the silent film era with one theater, the Broadway.
The company grew over the next two two decades to become the dominant downtown Los Angeles movie theater operator by the late 1940’s, court papers said.
The company currently operates 16 theaters and 87 screens, including two IMAX auditoriums in California, Colorado and Utah.
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Other Economy News Today
This massive grocery store is now shutting its doors soon at a historic location which has operated for over 60 years.
The Giant Food store on Langston Boulevard in Arlington, Virginia will permanently close on Thursday, February 29.
Giant Food has anchored the Lyon Village Shopping Center, at 3115 Langston Blvd. (formerly Lee Highway), for more than 60 years.
It is at the intersection of Langston Boulevard and Spout Run Parkway.
“In the normal course of evaluating our business and local trade areas, we determined that we can adequately serve this community through several other nearby Giant Food locations, as well as our online services, Giant Pickup and delivery,” Giant said in an emailed statement.
The nearest Giant Food store is on Washington Boulevard in Virginia Square, about a mile away.
Lyon Village Shopping Center’s other tenants include CVS Pharmacy, burger restaurant BGR, Starbucks, The Italian Store, and Big Wheel Bikes.
Giant said all employees at the Lyon Village store are being offered transfers to other Giant locations.
A spokesperson for the grocery store made the following statement:
“In our ongoing assessment of business dynamics and local trade areas, we’ve concluded that the needs of this community can be adequately met by several nearby Giant Food locations, as well as our online services, Giant Pickup, and delivery.
We want to express our sincere gratitude to the Arlington community for their support over the 60 years that Giant Food has been a part of this neighborhood, and we look forward to welcoming our shoppers at our other local Giant Food locations.
We appreciate the work our store associates have done to serve this community, and all associates from the store are being offered the opportunity to transfer to other Giant locations.
[Furthermore] We are committed to supporting our employees through this transition and ensuring that they have continued opportunities within our company.”
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Also Read: This Massive Restaurant Is Now Closing 41 Locations
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