Film-Tech Forum ARCHIVE: Warren Theatres Sold to Regal

This is topic Warren Theatres Sold to Regal in forum Ground Level at Film-Tech Forum ARCHIVE.

To visit this topic, use this URL:
https://ft-forum.com/ft/cgi-bin/ubb/ultimatebb.cgi?ubb=get_topic;f=5;t=003038

Posted by Sam Graham (Member # 2889) on 05-19-2017, 09:37 AM:

And the world just ended.

Buyer Confirms Purchase of 7 Warren Theatres

Regal Entertainment Group confirmed in a Friday press release that it is buying seven Warren Theatres.

On Thursday, The Eagle reported that it was likely the Tennessee-based company was buying Bill Warren’s Wichita-based theater chain.

The sale includes all of Warren’s theaters in Wichita – the east-side, west-side and Old Town Warren Theatres, the Palace Theatre and Movie Machine inside Towne West Square – and his theaters in Moore and Broken Arrow, Okla.

The sale does not include the two new theaters Warren is building in Oklahoma City.

“I know our movie-going guests and our 1,400 cast members will be in great hands with Regal,” Warren said in a statement. “I have long been impressed with Regal’s high standards of quality showmanship and outstanding customer service.”

Regal CEO Amy Miles said in the statement that Warren Theatres is a market leader in Wichita and Oklahoma City.

“We are honored and excited to add these high-quality assets to our circuit and expect the transaction to be immediately accretive to our earnings and cash flow.”

Posted by Martin McCaffery (Member # 37) on 05-19-2017, 09:44 AM:

"1,400 cast members"?

Is that how they refer to employees? Are they only acting like cashiers and doormen?

Posted by Marcel Birgelen (Member # 6801) on 05-19-2017, 09:57 AM:

Disney also calls most of their theme park employees "Cast Members".

I wonder what will happen with the new sites he's building. Will they be sold later on or does he intent to focus on those?

Posted by Sam Graham (Member # 2889) on 05-19-2017, 12:25 PM:

Warren's comments...

Wichita Eagle

quote:
Bill Warren confirms Warren Theatres sale to Regal Entertainment
BY CARRIE RENGERS
crengers@wichitaeagle.com

An emotional Bill Warren confirms he’s sold seven of his Warren Theatres, including all of the Wichita ones, to Tennessee-based Regal Entertainment Group.

The deal is effective immediately. Though it was a difficult decision to sell his almost 30-year-old company, Warren, 68, says it was the right one to permit him to do even bigger things.

“There’s a lot more seller’s happiness than seller’s regret.”

On Thursday, The Eagle reported that Regal was likely buying the Wichita-based theater chain.

The sale includes all of Warren’s theaters in Wichita – the east-side, west-side and Old Town Warren Theatres, the Palace Theatre and Movie Machine inside Towne West Square – and his theaters in Moore and Broken Arrow, Okla.

The sale does not include the two new theaters Warren is building in Oklahoma City.

Warren says he hand-picked Regal in large part because of the company’s CEO, Amy Miles.

“If it wasn’t for Amy, I don’t think I ever would have sold,” Warren says.

He calls her sharp, accomplished and “probably one of the most decent, easy-to-talk-to people I’ve ever met in my life.”

Warren says that was important to him because of how much he cares for his customers and employees.

“This is a legacy thing.”

In a statement, Miles said Warren Theatres is a market leader in Wichita and Oklahoma City.

“We are honored and excited to add these high-quality assets to our circuit and expect the transaction to be immediately accretive to our earnings and cash flow.”

Warren’s office will remain in Wichita even though he’s out of the theater business here. He says he’s looking to grow his business elsewhere.

In a wide-ranging interview, Warren discussed what brought him to this point in the theater business and where he’s likely to go.

“I just want to reshape the theater business and reshape what people expect going into a theater,” he says. “That’s my third reincarnation in the movie theater business, and I’m really looking forward to it.”

Posted by Buck Wilson (Member # 5885) on 05-19-2017, 02:36 PM:

quote:
“I have long been impressed with Regal’s high standards of quality showmanship and outstanding customer service.”

Warren is not retarded. What a crock of shit. There's no way he thinks that's true. I wonder how much they paid him to say that.

This is the worst industry news I've heard since the digital conversion. I am quite literally sick to my stomach.

All those Warren employees would be better off just quitting right the fuck now.

Posted by Monte L Fullmer (Member # 2797) on 05-19-2017, 03:27 PM:

I was a Senior Cast Member at my REG location, which is a title pertaining to one that has leadership qualities and represents the other cast members to the MGMT team.

It's a higher paid job, has more responsibilities, gives instruction and oversees operation in the floor.

Nice thing about this is that the person doesn't have to suit up, but stay in cast member uniform.

More or less, this person is like a shift lead, but in a more entire role.

Plus, with the taking over of the Warren, this will give REG a more idea on how to run a food and beverage cinema, if they retain the mgmt team of the floor and the restaurant.

They know the industry is now heading in this direction

Posted by Bobby Henderson (Member # 840) on 05-19-2017, 05:52 PM:

Ugh. I had a sneaking suspicion a move like this was coming. When Warren Theaters dropped THX certification from all its screens (going with this new "WAVE" thing) that seemed like a big warning sign.

I'm not sure what Regal will do to "fix" various things at the existing Warren sites. But I worry. All those curtains and masking on the screens could soon be disappearing. Other down-grades on the decor (to cut maintenance costs) wouldn't surprise me. I don't know how Regal could "RPX" any of these Warren screens without seriously harming existing sound/projection quality. I'm not sure how Regal could even Frankenstein the "RPX" sign system and decor into these theaters either. In terms of visual theme they're polar opposites.

There are some actual upgrades Regal could do with some of these screens. Only two of Warren's existing screens have Atmos, the two Grand Infinity houses at the Broken Arrow Warren.

As for the two theaters in Oklahoma City that Bill Warren has in progress, what chain affiliation or brand will these two theaters have? Will they be Warren branded or something else? I assume this Regal buy out would include the branding rights of Warren Theaters.

Posted by Manny Montes (Member # 5639) on 05-19-2017, 10:59 PM:

REG has been positioning themselves to be more in the F&B game starting with assuming all management responsibility of the cinebarre locations last year, their two santikos purchases this year and now this. The hate here is pretty funny actually considering people are claiming Warren was "paid" to say nice things. From his interview it sounds like he wanted to exit the space and sell, considering the size and scope of his theaters he really could have only sold to either AMC, Cinemark or Regal

Posted by Bobby Henderson (Member # 840) on 05-20-2017, 12:41 AM:

quote: Manny Montes
The hate here is pretty funny actually considering people are claiming Warren was "paid" to say nice things. From his interview it sounds like he wanted to exit the space and sell, considering the size and scope of his theaters he really could have only sold to either AMC, Cinemark or Regal

I know Bill Warren is not the age of a spring chicken. But did Bill Warren not have anyone within his family or theater organization who could have taken over the reigns of his theater chain to maintain the vision of what this chain was supposed to be? Why sell out?

A good example is In-N-Out Burger. I know not everyone is a fan of that fast food chain, but I still respect the integrity of this deliberately family-run, privately owned company. The couple who started the chain, Harry and Esther Snyder, are both gone now. Their only grandchild, Lynsi Snyder is the company owner now. There are investors begging and pleading for this company to go public. Lynsi Synder could literally cash in billions of dollars by taking the company public. But that's not what the founders wanted. Last time I checked anyone waiting for an In-N-Out IPO shouldn't hold their breath waiting for it to happen. Obviously the Snyder family doesn't want to do an IPO because they don't want any more "partners." They don't want a board of directors telling them how they need to be running their company. The existing owners already know how to do that.

So, yeah, I can't help but feel like this news with Warren Theaters is a big example of selling out. The movie-going experience is already in deep enough trouble as it is with all the idiocy happening with major Hollywood studios and their never ending quest to eliminate the theatrical release window. Chains like Warren Theaters were an oasis among so many fast food quality theater locations. Warren locations were a reason to appreciate getting out of the house to see a movie, as opposed to watching it on the TV screen at home. I just don't get the same vibe from an AMC or Regal location.

Posted by Monte L Fullmer (Member # 2797) on 05-20-2017, 04:56 AM:

quote: Bobby Henderson
The movie-going experience is already in deep enough trouble as it is with all the idiocy happening with major Hollywood studios and their never ending quest to eliminate the theatrical release window.

Heard stories why Campbell stepped down and let Amy Miles take over REG..for this same reason, but this could be hearsay.

Another "Peter Principle" situation.

Posted by Dennis Benjamin (Member # 1137) on 05-20-2017, 07:03 AM:

quote: Martin McCaffery
"1,400 cast members"?

Is that how they refer to employees? Are they only acting like cashiers and doormen?

Yes. Regular employees are cast members and GMs are simply numbers. For example, if you are the GM of a theatre whose theatre number is 777 - you are officially "GM777". When you call corporate for any reason, they don't want your name, they want your number.

Posted by Martin McCaffery (Member # 37) on 05-20-2017, 08:50 AM:

quote: Bobby Henderson
I know Bill Warren is not the age of a spring chicken. But did Bill Warren not have anyone within his family or theater organization who could have taken over the reigns of his theater chain to maintain the vision of what this chain was supposed to be? Why sell out?

One look at what the Patrick boys did to Carmike should answer your question. And really, when you get to a certain size the vision of what a chain should be is to make money.

Posted by Monte L Fullmer (Member # 2797) on 05-22-2017, 04:42 AM:

quote: Dennis Benjamin
you are officially "GM777"

..and that's how the email address is to the GM: gm, no space,location number (no space between the two) at regalcinemas dot com.

Posted by Manny Montes (Member # 5639) on 05-22-2017, 03:25 PM:

quote: Martin McCaffery

"1,400 cast members"?

Is that how they refer to employees? Are they only acting like cashiers and doormen?

quote: Dennis Benjamin
Yes. Regular employees are cast members and GMs are simply numbers. For example, if you are the GM of a theatre whose theatre number is 777 - you are officially "GM777". When you call corporate for any reason, they don't want your name, they want your number.

Bill Warren was the one who referred to his employees as cast members, however you are correct in the regal numbering scheme, though I was never referred to as my GM# when I was there. I almost like it better than one company I worked for who just had our emails as city@xyzcorp.com and would just refer to my building as the city we were in...

I think the cast member thing is just big companies trying to put the disney magic into their building, referring to them as being "on stage" or "putting on a show"

Posted by William Kucharski (Member # 7246) on 05-23-2017, 08:20 AM:

quote: Bobby Henderson
The movie-going experience is already in deep enough trouble as it is with all the idiocy happening with major Hollywood studios and their never ending quest to eliminate the theatrical release window. Chains like Warren Theaters were an oasis among so many fast food quality theater locations. Warren locations were a reason to appreciate getting out of the house to see a movie, as opposed to watching it on the TV screen at home. I just don't get the same vibe from an AMC or Regal location.

I think between the virtual lock on new releases AMC and Regal have in most markets, the fact that the vast majority of the movie going public no longer gives a #$@! about presentation quality (who cares what the movie looks like on-screen when you're on Facebook or sending/responding to text messages for half the movie) and the expensive retrofits chains are having to do to even get butts in seats (leather full reclining chairs, shakers under the seats, full bars at the concession stands, and adding Atmos/Dolby Cinema houses), I think Warren just saw the writing on the wall.

I really loved seeing The Force Awakens on the IMAX in Moore, OK, but I suspect the future will be the studios making a deal with the major exhibitors and getting the window down to zero by allowing people to stream movies day and date with theater release via the AMC, Cinemark or Regal apps. [Frown]

I will give some kudos to Regal as many of their locations still actually open side masking rather than letterbox the image on a 1.85:1 screen to show 2.35:1 or wider content, and they did host a 70mm run of The Hateful Eight in Denver.

Posted by Mike Blakesley (Member # 26) on 05-23-2017, 12:21 PM:

quote: Manny Montes
I think the cast member thing is just big companies trying to put the disney magic into their building, referring to them as being "on stage" or "putting on a show"

I'll bet you're right... I wish Disney had a way to copyright that phrase, since it actually means something with them.

Posted by Scott Jentsch (Member # 1681) on 05-23-2017, 12:38 PM:

And what of the two Oklahoma City locations that Warren is/was building?

It's difficult to tell from the news coverage and the announcements released so far what's happening there.

My guess is that he's going to open them under a new brand, starting his third act in the business. What other operation would take them over, if not Regal?

Posted by Terry Monohan (Member # 8285) on 05-23-2017, 05:04 PM:

A sad day in the movie theatre world. Regal could care less about curtains and showmanship. You will walk into a Warren Theatre in the future when the curtains are broke and they will just stay open. How many Regal Theatres have you ever seen with curtains that open????

Posted by Sam Graham (Member # 2889) on 05-24-2017, 06:55 PM:

quote: Scott Jentsch
My guess is that he's going to open them under a new brand, starting his third act in the business. What other operation would take them over, if not Regal?

That's basically what he's implying in his comments, though the branding part is unclear. The stories state he "sold seven theatres" to Regal, not the brand in whole. He did state the Warren brand will remain on the Wichita plexes, but didn't say anyting about Oklahoma.

Posted by Lyle Romer (Member # 1266) on 05-25-2017, 08:48 AM:

quote: Mike Blakesley
I'll bet you're right... I wish Disney had a way to copyright that phrase, since it actually means something with them.

Agree. At Disney, you are in a theme park. The employees are part of the theme. The person that directs you into The Haunted Mansion is supposed to be a servant that lives/works at the Mansion. They are putting on a show, not just doing a job.

Essentially, the entire park is a giant set/stage.

At a movie theatre, you are going there to see a show. The cashier or usher is part of the experience but they aren't part of the movie.

Posted by Marcel Birgelen (Member # 6801) on 05-25-2017, 08:46 PM:

Even Disney will have a hard time trademarking a term like "Cast Member", especially because it's obviously a term being used for movie, theater productions, etc.

But yeah, calling all the staff at a cinema "cast member" is a little awkward. Even Disney doesn't call all their theme park employees "cast members", the employees of the "imagineering" division are usually called "imagineers". Imagineering is actually a Disney trademark, although they didn't invent the term themselves.

quote: Sam Graham
That's basically what he's implying in his comments, though the branding part is unclear. The stories state he "sold seven theatres" to Regal, not the brand in whole. He did state the Warren brand will remain on the Wichita plexes, but didn't say anyting about Oklahoma.

Even if Regal didn't acquire the Warren brand, it's unlikely they'll succeed in phasing it out before those new locations are up-and-running. In that light, it's probably unlikely they will open under the Warren brand.

Also, if he didn't sell the brand, he obviously didn't get the most out of the deal. The brand itself has a lot of value, especially because most will associate it with a high quality product, compared to the direct competition. Not selling the band would feel a bit like Coca Cola selling their business to Pepsi, while the Coca Cola Company keeping the name Coca Cola for themselves.

I'm curious about what those new locations will have in store. For some reason, just opening two new multiplexes without doing anything special after just having sold the core business feels odd.

Posted by Manny Montes (Member # 5639) on 05-31-2017, 04:22 AM:

I mean, it meant a lot for a small community, but outside of the 7 theaters they operated in the midwest and their communities you'd be hard pressed to find someone who knew what Warren Theaters is. I don't really think Regal would be interested in the brand considering in this case they're Coca-Cola and Warren is more like Cheerwine, they'll probably keep it as is like they did with the hollywood theaters, UA, etc... I think the only reason they rebranded the santikos locations was because it was only a partial purchase and Santikos is still around as a company.

Posted by Sam Graham (Member # 2889) on 06-13-2017, 06:42 PM:

Warren's new company has a name...Warren Entertainment Group.

Aside from the still in development OKC plexes, he's considering developing restaurants. Possibly his own, possibly franchising chains. He plans to develop the pad sites in front of the Midwest City theatre himself.

So it sounds like he's really in this, not just planning to flip them.

Posted by Marcel Birgelen (Member # 6801) on 06-13-2017, 08:24 PM:

quote: Manny Montes
I mean, it meant a lot for a small community, but outside of the 7 theaters they operated in the midwest and their communities you'd be hard pressed to find someone who knew what Warren Theaters is. I don't really think Regal would be interested in the brand considering in this case they're Coca-Cola and Warren is more like Cheerwine, they'll probably keep it as is like they did with the hollywood theaters, UA, etc... I think the only reason they rebranded the santikos locations was because it was only a partial purchase and Santikos is still around as a company.

Yeah, it sure isn't a brand with a comparable value or impact like Coca-Cola or McDonald's, still it is a recognized brand within the community they're operating in. So, for the community, it might be an even more powerful brand as e.g. Coca-Cola.

Slapping on the generic Regal brand wouldn't really do the top-tier locations of the Warren brand any justice. So, if the Warren brand disappears on those locations, I guess it will be replaced by something new eventually. Maybe they're going to make it into a new boutique brand for their overall business for a broader roll-out throughout the country. Obvious just speculation, but you might presume there is a broader plan.

quote: Sam Graham
Warren's new company has a name...Warren Entertainment Group.

Given Regal's full name is Regal Entertainment Group, this obviously isn't at the least confusing. [Wink]

I don't think Regal will allow him to operate the new locations under the Warren name though. Although, sometimes those kind of deals are rather wicked. He could have sold the theaters for example, but not the right to the name or even the concept. He might even ask a licensing fee for it. A certain guy who is now president was known for pretty much similar tactics with many of his ventures, although not always entirely voluntary. [Razz]

Posted by Buck Wilson (Member # 5885) on 06-14-2017, 08:36 PM:

quote: Sam Graham
Warren Entertainment Group.

BRB VOMITING

Posted by Jarod Reddig (Member # 6363) on 06-18-2017, 02:35 PM:

Still sad about this news. My sister has lived in Wichita for almost 20 years and a visit to a Warren Theater was always part of the trip. My wife and I make the 3 hr trip once a month. Warren Theaters were special as they did everything about as good as possible. Only theater I know of that still uses masking and curtains; although two years ago i snuck into the projection hall of the Warren East and it was a MESS! I couldn't believe it! Trash and junk piled everywhere. I prefer Warren West that had the IMAX. Prolly seen over 100 movies there.

Posted by Sam Graham (Member # 2889) on 07-28-2017, 03:32 PM:

Regarding the Warren Theatres brand, The Warren Theatres domain now takes you to a page that shows two links...one to Warren Theatres for current developments, and one to Regal Cinemas "for existing Warren locations."

The Warren link takes you to a notice that reads "We're not done yet, folks!

Warren Theatres LLC has entered the next chapter in our storied history, and we are planning on developing future Warren Theatre locations.

Our mission is to be the best-in-market theatre offering the public with the best in cinematic sight and sound wrapped in a package of opulence, comfort and security. We have a demonstrated record of success as a regional draw for movie-goers across a wide demographic."

So yes it appears they will still be going by Warren Theatres.