GENERAL CINEMAS MULLS BANKRUPTCY.Byline: Staff and Wire Services Movie theater chain General Cinemas might consider a bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most reorganization because of losses on bad investments and competition, the company said Tuesday in a quarterly filing. The Newton, Mass., company's announcement adds to the woes of the movie theater industry, which is struggling with a severe overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. of screens. United Artists Theater Co., Edwards Cinemas and Carmike Cinemas have all filed for bankruptcy this year. Loews Cineplex Entertainment Corp., which operates 2,967 screens in 385 locations, earlier this month reported dropping revenues and warned it might default on its debt. General Cinemas' stock fell 37 percent, or $1.81 a share, to $3.13 in midday
The cinema chain lost $10.1 million, or $1.30 a share, in the quarter ending July 31. Attendance was down about 4 million, to 72 million, at its theaters over the same quarter last year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the document filed Friday with the Securities and Exchange Commission. The company also took a third-quarter charge of $9.5 million on its investment in MotherNature.com, which it said was ``permanently impaired.'' While other exhibitors continue to struggle, Los Angeles-based Pacific Theatres Corp., owner of the historic Cinerama Dome dome, a roof circular or (rarely) elliptical in plan and usually hemispherical in form, placed over a circular, square, oblong, or polygonal space. Domes have been built with a wide variety of outlines and of various materials. in Hollywood, said Tuesday that it is continuing to expand. The exhibition company, through its Pacific Theatres Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. division, plans to build theaters for a 300,000-square-foot open-air entertainment and retail center in Old Pasadena. The ``ArcLight'' is Pacific Theatre's new concept for showing movies with top-quality projection, sound and seating coupled with amenities such as reserved seating and dining options and gourmet coffee. Pacific Theatres operates 350 screens in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and Hawaii. The Cinerama Dome is under renovation. General Cinemas, which operates 130 movie theaters with more than 1,000 screens in 23 states, said it has enough cash and investment income to cover its bills for the next 12 months. |
|
|||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion