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Topic: What's the latest theatre to close or open you have heard about?
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Darryl Spicer
Film God

Posts: 3250
From: Lexington, KY, USA
Registered: Dec 2000
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posted 03-20-2009 04:13 AM
Troubled Muvico sells 4 theaters to Cinemark
Cinemark Holdings makes its entry into South Florida by buying four of the financially troubled Muvico theaters.
In order to avoid a bankruptcy filing or a takeover by its lender, Muvico Entertainment on Wednesday agreed to sell four of its top performing theaters to Cinemark Holdings.
The Fort Lauderdale-based Muvico is selling Paradise 24 in Davie, Palace 20 in Boca Raton, Boynton Beach 14 and another theater in Maryland. Cinemark Vice President James Meredith said the company will take over operations Thursday.
''We're very excited to add these high-quality theaters,'' said Meredith, vice president of marketing and communications for Cinemark, who declined to reveal the terms of the deal. ``We view [South Florida] as one of the top markets in the country.''
All Muvico theater employees have been offered jobs with Cinemark, Meredith said. Cinemark will also honor all Muvico prepaid tickets or discount coupons until the end of May.
''Our goal is to implement a seamless transition,'' he said. ``For right now we want to make sure the customer doesn't experience any change.''
Muvico Chief Executive Michael Whalen told The Palm Beach Post that with this deal,``Muvico survives.''
The money will be used to retire the $55 million debt to iStar Financial. Muvico had failed to make payments on the debt since October. The New York real estate investment trust had started foreclosing on the loan and trying to take control of the company through litigation.
Meanwhile, another landlord sued to evict Muvico from its Davie and Pompano Beach locations and one of its Tampa theaters.
The sale will leave Muvico with 10 theaters, including locations in Pompano Beach, Hialeah and West Palm Beach. But a number of those theaters have been struggling.
Whalen said Muvico Chairman Joe Amaturo plans to make a major investment in the company, which will be used to upgrade its remaining theaters.
For example about $1 million will be spent on upgrades at the Muvico Parisian at CityPlace in West Palm Beach, including the creation of a Sony Playstation lounge. Muvico also will trim the number of auditoriums from 20 to 16.
''Our goal is to get people to come to the theaters more often,'' Whalen said.
While Cinemark plans to maintain the Muvico name during a transition period, the theaters will be rebranded under the Cinemark name within three to six months, Meredith said.
The Muvico acquisition marks the first entry into South Florida for Cinemark, which has 420 theaters in 38 states and 12 countries. Cinemark has two Florida theaters -- one in Orlando and another in Jacksonville.
Landlords are hoping Muvico will have enough capital to move forward with its future development commitments.
Muvico has plans in the works for opening at CocoWalk in Miami and Fashion Mall in Plantation.
At CocoWalk, Muvico is in the midst of getting city permits to renovate the old AMC Theater.
Plans call for a November opening, said Mia Stierheim, who handles the leasing for CocoWalk. ''They've assured us everything is a green light,'' Stierheim said.
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