Film-Tech Forum ARCHIVE: Regal to buy Movico

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Posted by Thomas Dieter (Member # 2507) on 02-05-2007, 12:26 AM:

It's my understanding that Regal Cinemas is in the negotiation stages of purchasing the Movico Chain. Our representative that does our carpet cleaning stopped in and setup their date to come in and mentioned this, as Muvico won't give them a yes or no until the deal is signed and has a press release or vetoed. Does anyone have information on this?

[ 02-06-2007, 01:01 PM: Message edited by: Thomas Dieter ]

Posted by John Joseph Fink (Member # 3619) on 02-05-2007, 06:15 AM:

I haven't heard anything on this but this is odd for Regal, they ussually don't position themselves to upscale movie goers the way National Amusements and Muvico do with bars and expanded snack offerings. From what I understand Muvico's lounge in Bocca is very successful, would Regal close, I seem to remember them saying they are only in the "movie and snack bar business" that they don't focus on extended menu offerings.

Secondly, if they bought Muvico, Regal would take over the Medowlands Xanadu, some 4 miles away from where Regal tried to open two theaters in the low income neighborhood of North Bergen, Nj a few years ago. The 13-screen Bergen Plaza was a discount house less than a year after it opened, the 12-screen Columbia Park was later sold to a discount opperator. Xandu is a better location but I'd hope the larger than life Muvico sites would have their own brand idenity in the circut the way that The Bridge and the other Cinema De Lux sites do in National Amusement's chain.

Posted by Dennis Benjamin (Member # 1137) on 02-05-2007, 10:23 AM:

I know that Muvico has been up for sale. I am not suprised by this. With Regal's business plan and some of those Megas that Muvico operates - it's a win win situation. As far as Muvico's future locations - I am sure the Regal Real Estate team can spin the leases. Not to mention they can shed any unwanted locations in the next bankruptcy. [puke]

Posted by Lyle Romer (Member # 1266) on 02-06-2007, 09:27 AM:

Although this is certainly possible as Muvico is up for sale (hence the big fight between the board and the CEO that was fired) and they were working on a deal with AMC a couple of years ago, I doubt the carpet cleaning guy would be privy to these negotiations.

The one in Boca Raton and the one in Davie do astronomical business. $12+ million a year in box office.

Muvico also has locations like Ybor City in Tampa that don't do very much business at all but cary huge debt service because of the very high construction cost.

Posted by Thomas Dieter (Member # 2507) on 02-06-2007, 01:01 PM:

I'm not saying that the person that came into schedule our cleaning was correct, or that they are in on the negotiations. This was information she got from the GM of a theatre that she was trying setup a new account with Muvico, but if Regal were to buy them out they would keep their contract and Regal would want them to do all their carpet in Florida.

Posted by Bobby Henderson (Member # 840) on 02-06-2007, 03:41 PM:

I'm kind of surprised to see this Muvico buy-out news. Regal is selling any theaters it has in Oklahoma.

The company opened the Crossroads 16 near Crossroads Mall in the southern part of Oklahoma City a few years ago. The Mall itself is in very serious decline. Competition from other malls is fierce and the immediate area around Crossroads Mall is dangerous. A few miles farther south along I-35, Warren Theaters is finally building their new luxurious and huge Warren 20 in Moore, OK. All those factors seem to spell near certain doom for the Crossroads 16 theater.

The last theater chain to do a complete pull out from Oklahoma: General Cinemas. They went out of business not long after that.

Posted by Cory Isemann (Member # 2517) on 02-06-2007, 04:56 PM:

quote: Bobby Henderson
Regal is selling any theaters it has in Oklahoma.

Crossroads was the only Regal in OK. It wasn't a bad theatre. It's now an AMC.

Posted by Dennis Benjamin (Member # 1137) on 02-06-2007, 07:22 PM:

quote: Cory Isemann
Crossroads was the only Regal in OK. It wasn't a bad theatre. It's now an AMC.

If it wasn't for certain laws put in place Regal and AMC would have merged already.

I give it less than ten years before a merger comes up between these two. Hell, in twenty there may be only one major theatre chain in the U.S.

Posted by Bobby Henderson (Member # 840) on 02-07-2007, 08:55 AM:

...if there are any movie theater chains left.

Some of the hair-brained ideas various widget-selling business people keep floating (such as releasing movies on video the same day they appear in theaters), combined with certain trends in technology, make the long term view more than a bit scary.

Posted by Monte L Fullmer (Member # 2797) on 02-07-2007, 09:26 PM:

...that makes one wonder then if the Gov't will step in to control any of these potiental monopolies...as they did with MaBell...

Posted by Christopher Crouch (Member # 3784) on 02-07-2007, 10:43 PM:

Or, the mega companies(company) find themselves too bloated to adapt/adjust with changing technologies, market trends, financial demands, etc. at an acceptable rate.

As easily as I could picture the industry consisting of a monopoly, I could picture a "super" company imploding under it's own size and the industry returning to smaller, market tailored companies.

Posted by John Joseph Fink (Member # 3619) on 02-08-2007, 08:00 PM:

Should we be afraid that Sumner Redstone wants his daughter to sell National Amusement's theaters (she claims the future is in going upscale and therefore is building Cinema De Lux sites). I'd hate to see AMC and Regal controll everything, but it seems to be moving towards a total consolidation. There are a few regional players that I don't think would "sell out" - Bow Tie Cinemas is one, a growing chain that also is attempting to make cinema going more upscale. But, in the view of Regal, I think, they don't view film going as an upscale activity - most weatlhy people likely have large screen TVs and may perfer DVD. AMC it should be noted in NJ has only changed signs at their former General Cinema and Loews sites, which is unfortunate since a good number of Loews sites were in poor repair and still are. Shortening the DVD window, thus taking the emphisis off of the movie going experience is indangering the cinema, I hope its stopped or curbed. It's one thing when a small indie film that most people wouldn't have been aware of or had access to at their local multiplex is on DVD, HD Net or IFC on demand while its at the IFC Center, but its another when a major Hollywood movie is on DVD only a few months after it plays in theaters. At the same time Muvico, Cinema De Lux, and Hamid Hashemi's iPic should be recongized as the future in exhibition, AMC only opperates sites like this from GC/Loews mergers (outside of their Buckhead Backlot), Regal as far I know does not.

Posted by Scott Jentsch (Member # 1681) on 02-17-2007, 09:31 PM:

This may be of some interest, in regards to this thread:

Regal to take over Pointe Orlando theaters
Orlando Business Journal - 8:32 AM EST Friday, February 16, 2007

quote:
Regal Entertainment Group will take over the 21-screen theater complex at Pointe Orlando effective March 1, according to New Plan Excel Realty Trust Inc., the owner and operator of the lifestyle center.

The theaters will be closed until early summer for renovations, including the installation of Imax motion picture equipment. The current operator, Fort Lauderdale-based Muvico Theaters, had originally installed the oversized projection system and screen, but removed the equipment in March 2001.

The theater includes 67,726 square feet and 3,300 stadium-style seats. The current ticket tower is also being relocated to the first floor with an adjacent vehicle drop-off and pick-up area for easier access.

Pointe Orlando is in the middle of a $40 million renovation that has already seen four new restaurant additions. Five more restaurants and at least five new retail locations will be opening by the end of the summer.

New Plan (NYSE: NXL) is a self-administered and self-managed REIT, with a national portfolio of 477 properties, including 175 properties held through joint ventures, and total assets of approximately $3.5 billion.

Regal Entertainment Group (NYSE: RGC) is the largest motion picture exhibitor in the world, operating theaters under the Regal Cinemas, United Artists Theatres and Edwards Theatres brands. They operate 6,403 screens in 39 states and the District of Columbia, about 18 percent of all indoor screens in the United States including 11 theaters in Central Florida.

Posted by Scott D. Neff (Member # 185) on 02-19-2007, 06:51 PM:

That sounds like a lease issue. Perhaps the landlord wanted Muvico out and a more friendly operator in.

Posted by Matt Kerekes (Member # 2777) on 03-09-2007, 10:28 AM:

Does anyone else want to see Regal STOP expanding as much as they are?

Posted by Jesse Skeen (Member # 586) on 03-09-2007, 03:58 PM:

Yes, as long as they keep running their theatres the way they are!

Posted by Brian Woods (Member # 3521) on 03-09-2007, 05:22 PM:

Can't we all get along? How are they running their theaters the way they do that will make them fail? How is AMC, Cinemark, or Muvico running theirs any better that makes them exceed the way Regal is running things? How is your theater running things much better that it’s making you rich? It's like saying Wal-Mart should go out of business.....ok, maybe they should, but where would their employees go work? (Remember, Wal-Mart has more employees than the federal government.) If you don't like a certain theater, please by all means condemn them, make fun of them, call them names, point out their flaws, but making a remark of who wants to see them Stop is like saying that you want someone to stop making Kellogg’s Raisin Bran since their company is too big, and Post has a Raisin Bran that's better.....but they are evil too because you can buy the local store brand of Raisin Brand at half the cost and it taste sorta the same...(minus the raisins that have legs and wings and the plastic grain sack.) I understand the "down with the man" syndrome, but give it up. If a company should stop growing just because people are scared a theater is coming near you, maybe the United States should have just moved in and acquired the original 13 colonies and stopped growing themselves. I do like some local theaters in my area, but I also dislike some of the crappy one's too. It’s like when you go to a local hometown store, and you can't find what you’re looking for because their selection is small. I rather go to a Wal-Mart Tire Lube Express Hair Salon Taxidermist store than go to a local store without the item I am looking for. So, to you reel huggers out there, "They are coming for you Barbra....." [scream]

Posted by Christopher Duvall (Member # 284) on 03-09-2007, 11:43 PM:

Here here Brian...

Posted by Carl Martin (Member # 1146) on 03-10-2007, 04:50 AM:

quote: Brian Woods
How are they running their theaters the way they do that will make them fail? How is AMC, Cinemark, or Muvico running theirs any better that makes them exceed the way Regal is running things? How is your theater running things much better that it’s making you rich?

i don't care who gets rich or not running a theater. i care about presentation, programming, film culture in general.

quote: Brian Woods
I do like some local theaters in my area, but I also dislike some of the crappy one's too. It’s like when you go to a local hometown store, and you can't find what you’re looking for because their selection is small.

regal would be one of those places where the selection is small. and the muzak is awful and the p.a. keeps announcing specials in aisle whatever.

Posted by Lyle Romer (Member # 1266) on 03-10-2007, 07:28 AM:

I think Scott's post about Regal taking over the Pointe Orlando loacation was the catalyst for this whole rumor. I don't think Regal is buying Muvico, just taking over that one location. Even that was probably an issue that Muvico didn't exercise a lease option or something like that. I'm happy because Regal is adding IMAX back to the location.