Film-Tech Forum ARCHIVE: Feedback wanted on Wallace/Hollywood Theaters

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Posted by Jeff Taylor (Member # 443) on 03-10-2003, 02:14 PM:

I've had some interest from Wallace Theaters in leasing one of my buildings for a new cinema. I've never heard of or worked with Wallace before. They're out of Washington state, and operate about 100 multiplexes under the Wallace and Hollywood names in various locations including Kansas, PA, Hawaii, Texas, etc. Anyone familiar with their operations? Feedback appreciated.

Posted by Don E. Nelson (Member # 1049) on 03-10-2003, 02:31 PM:

Hi Jeff,
Wallace is an ok sort of British fellow but watch out for Grommit,I've never seen anything like him, kind of a goofy guy that likes to eat dog food.. [Big Grin]

Posted by Jeff Taylor (Member # 443) on 03-10-2003, 02:37 PM:

Uh, yea. Thanks, Don. As I said, does anybody have any experience with Wallace or Hollywood Theaters?

Posted by David Stambaugh (Member # 1102) on 03-10-2003, 02:39 PM:

Ask Bobby Henderson what he thinks of Wallace. [Wink]

Wallace Cache 8, Lawton OK

Posted by Bobby Henderson (Member # 840) on 03-10-2003, 05:25 PM:

Jeff,

To put that sign picture in context (as well as provide a long opinionated answer), it is a photo I took this past weekend of the dilapidated Cache 8 Cinemas sign here in Lawton, OK. This sign has been a wreck for nearly 2 years. A few days ago the last couple face sections on the east elevation blew out in a windstorm. One of the sections struck a woman's car on Cache Road, causing paint and body damage.

Wallace/Hollywood has run this theater in Lawton for few years now and have steadily let its condition deteriorate to a pathetic level few theaters can match. What's amazing about that is United Artists didn't do much to maintain the place either for the decade they ran it, but it was still in mediocre yet operable condition when they let Hollywood have the keys to the place.

One of the reasons why the Cache 8 is allowed to operate in such horrible condition is an allocation agreement with distributors. The Carmike 8 just down the road is one of the best theaters in the state, but loses half the movies it could be getting to this horrible dump. With no need to compete, why pay for any improvements or even any maintenance?

I do not know why Wallace/Hollywood continue to operate this 8-plex. I can only guess they are locked into a suffocating long term lease agreement and it would cost them less to keep the place running at a financial loss than pay penalties in backing out of the lease.

Wallace/Hollywood has closed down and sold much better theaters in Oklahoma, such as the Penn Square Mall 10 theater in Oklahoma City. That one had a small, but decent THX screen with 70mm capability. Dickinson Theaters has converted that place to a semi-stadium seated complex, but the result is not nearly as good as the former General Cinemas build.

From what others have told me, either in these forums or via private e-mail, Wallace isn't really big on the quality thing even with new builds. I was underwhelmed by the Hollywood Spotlight 14 in Norman, OK. Maintenance doesn't seem to be a big deal at all either --more of a once-in-a-while luxury rather than necessity. I think they are banking on the belief that most people don't care about things like sharp projection, good sound and attractive environment.

Back here in Lawton, Loews and Home Depot are fixing to open new "superstores" nearly next door to each other and just down the street from the Cache 8 theater. Hopefully whoever is holding the lease on the theater might get an attractive offer from Best Buy or Circuit City. A lot of people in this area are also dying to get a Target store. Any of those things would be just fine as long as they get the Cache 8 demolished.

Posted by Mike Blakesley (Member # 26) on 03-10-2003, 06:08 PM:

They are opening a 9-plex in Bozeman, MT this month. Here's a list of the features from their website:

•9 Screens
•Stadium Seating
•DTS® Digital Sound
•Student Prices
•Daily Bargain Shows
•Plenty Of Free Parking
•Luxurious Seating
•Friendly Service
•Family Atmosphere
•Stone Fireplace
•Convenient Location

Wow, a FIREPLACE. We don't have one of those! I've been foolishly spending money on projection and sound improvements. [Roll Eyes]

Posted by Brad Miller (Member # 2) on 03-10-2003, 06:38 PM:

Such fluff! Really now, what theater doesn't offer these features?

•Student Prices
•Daily Bargain Shows
•Plenty Of Free Parking
•Luxurious Seating
•Friendly Service
•Family Atmosphere
•Convenient Location

Other than the stove fireplace, dts and stadium seating, this place has nothing special going for it that you can't get anywhere else. Remember things like "friendly service" and "convenient location" are all opinion. [Wink]

Posted by Bill Gabel (Member # 1105) on 03-10-2003, 06:51 PM:

Brad wrote:

quote:
What theatre doesn't offer these features

Try any of the Loew's, AMC, UA Theatres here in Manhattan.

No Student Prices
No Daily Bargain Shows (No Twi-light shows at AMC)

The only Bargain is at Loew's State Theatre, it's $4.95.
That theatre is a piece of [bs]

Posted by Jonathan M. Crist (Member # 413) on 03-10-2003, 08:27 PM:

I thought the Lowe's State closed last fall around the end of September. It is my understanding that neither Philadelphia nor NYC have a discount venue left.

Posted by Bill Gabel (Member # 1105) on 03-10-2003, 09:09 PM:

The Loew's State in Times Square is still open and has been
open since last Sept. The theatre is in the basement of the
Virgin MegaStore in Times Square. I live a few blocks
away from the State Theatre and its been open. One of the
funny things about the State is their electronic marquee in front of the Virgin Store. When it works it shows what was
playing one or two months ago [Eek!]

The other Loew's bargain house in Manhattan was the Worldwide Plex on 50th between 8th & 9th. now closed and gutted.

Posted by William Hooper (Member # 71) on 03-11-2003, 01:28 AM:

There's a new-ish (5 yrs or less) pretty Hollywood nearby, which is incredibly inferior to the nearby Carmikes. Walls so acoustically transparent that it's a flashback to the old shoebox multi's, a staff that must be continually hunted down to turn the sound or focus the picture. Young, young, very young; doesn't look like a place where anyone works farther than a year or two into college.

Posted by Ken Layton (Member # 133) on 03-11-2003, 08:52 AM:

Scott Wallace originally started with the ACT 3 Theatres chain here in the northwest then he split off and started his own company called Wallace Theatres. Wallace also operates theaters in Hawaii.

Posted by Mark Gulbrandsen (Member # 72) on 03-11-2003, 09:17 AM:

Be very careful....most large chains are know for trashing out buildings then not renewing the lease when it runs out. I've seen so much of this that its not funny....Unless you REALLY need to least the property I'd say look for another type of buisness to lease it to, or open your own mpx. What ever you do don't let Wallace put those Trousers on you! They will commadere your property and have complete control over your life!

Typically local, or smaller independently owned chains that have obviously been sucessful are the better types to lease to. Its always been my experience that they take alot more pride in what they do and usually take very good care of the real estate.
Mark @ CLACO

Posted by Jeff Taylor (Member # 443) on 03-11-2003, 09:30 AM:

Thanks all for the input. Mark, I should have mentioned that this is an empty 80,000 sf anchor building (former dept. store) in an enclosed mall shopping center which happens to have enough ceiling height for a stadium theater complex, and we don't have a lot of traditional retail "takers" lining up, although two other cinema operators have expressed interest. FWIW, we have two other malls where we have added first class stadium 'plexes with major circuit operators, and have had excellent results in terms of both rental income and a supporting/complementary use for the malls. That's not to say Wallace is any good, but the concept does work with an enclosed shopping mall.

Posted by Claude S. Ayakawa (Member # 1401) on 03-11-2003, 11:17 AM:

Jeff,

I have commented many times about Wallace theatres in Hawaii but I guess you have not been reading my posts. I have found the way they operate their theatres as a big joke and a disgrace to theatre operation and exhibition. Beside the shabby upkeep of their theatres, they have violated the rules of "Film Done Right" so many times, that I no longer want to see anymore films in their theatres no matter what the show . Two classic examples are the lack of surrounds for films like "RELIC" and "MONEY TRAIN" after they advertised the films as SRD and SDDS presentations. When I conplained, the manager just sarcastically told me that's the way the sound was recorded and nothing can be done. The Dolby 5.1 laserdisc of "THE RELIC" and the DVD of "MONEY TRAIN", proved him wrong! The other example was the time the projectionist turned off the projector lamp when the credits was still running. There were many other times they made me unhappy with their presentations, I never went back. On the other hand, I cannot find any fault with Consolidated or Signature Theatres in the way they show films except for the time the projectionist at Consolidated (Pacific) did not turn on the house lights during the intermission of "GODS AND GENERALS". This is something one can expect at a Wallace theatre. Do you suppose the projectionist was a new employee who started to work for Consolidated after working for a Wallace theatre? [Smile]

-Claude

Posted by Bobby Henderson (Member # 840) on 03-11-2003, 04:55 PM:

I did not know the same fellow running Wallace Theaters is also the guy who started up the ACT III circuit in Washington State. Really, it is pretty shocking.

In the early 1990s, ACT III was one of the more aggressive circuits when it came to building theaters with digital sound in every auditorium or making an entire multiplex 100% THX certified. Some of their theaters in the late 1990s, before the Regal takeover, featured all-THX and all three digital formats on every screen.

So, I'm fairly surprised that this fellow is overseeing such a disgraceful movie theater circuit. Poor show quality, poor maintenance and poor customer service seem to be the big deals at most any Wallace site.

Posted by Michael Coate (Member # 757) on 03-11-2003, 05:25 PM:

Okay, I confess. I once worked for Wallace.

True story.

This conversation occured in the fall of 1993.

Mike: So, what are the chances you can equip some of your screens with digital sound?

Wallace General Manager: No chance. People can't tell the difference anyway.

This conversation took place in spring 1994.

Mike: Any chance you can order some new letters for the marquee? It seems every week there's at least one movie title that ends up with a missing letter or two.

Wallace General Manager: No need. People can figure out what the missing letters are.

Mike: But it's bad presentation. It reflects poorly on the company.

Wallace General Manager: Having a good presentation doesn't help us sell any more tickets.

Posted by David Stambaugh (Member # 1102) on 03-11-2003, 05:34 PM:

Back in the mid-90s Act III renovated Cinema World 8 here in Eugene, expanding from 4 to 8 screens in the process. All 8 screens were THX-certified, all 8 had both DTS and Dolby Digital sound, plus they had 2 roll-around SDDS units. Around the same time, they also renovated The McDonald Theatre. They installed new projection, seats, screen, and all 3 digital sound formats. They also went the extra mile with the McDonald and restored all the elaborate gold leaf paint on the sculpted ceiling and things like that.

Posted by Ken Layton (Member # 133) on 03-11-2003, 10:53 PM:

Wallace Theater Corp.
919 S.W. Taylor St., Suite 800
Portland, Oregon 97205
Phone: (503) 221-7090
Fax: (503) 796-0229
URL: www.wallacetheaters.com

Funny but they're in the same offices as ACT 3 Theatres and for the most part have the same ACT 3 personnel running the company. Also, suite 900 is Tom Moyer's office!

[ 03-12-2003, 12:36 AM: Message edited by: Ken Layton ]

Posted by Doug Willming (Member # 728) on 03-12-2003, 07:55 AM:

Wallace Theaters has been a client of mine for many years. I provide them with logo trailers and lobby preview DVDs and tapes. I dealt with Scott Wallace personally when Act III bought out Santikos here in San Antonio back in the '80s and found him to be one of the toughest negotiators I've ever run across. Hollywood Theatres was also a client of mine (I did their "Mr. Stubbs" policy trailer). When Wallace bought out Hollywood (they were either bankrupt or about to go under), I believe they got a bunch of old theatres that Hollywood had swapped with Dickinson in an effort to reposition themselves better zone-wise. I know some of those theatres have been closed. I have never actually been to a Wallace Theater - they have quite a few in Texas, but none in San Antonio or the surrounding area - so I can't comment first hand as to their condition or quality or lack thereof.

I would like to say in their defense (since I believe the original post was asking about the company business-wise) that they have always been one of my fastest paying clients, even during the downturn when a lot of my other clients were either going bankrupt or taking 6 months to pay their bills. If I were looking for a tenant, I would feel confident with them that I wouldn't be faced with a Chapter 11 manipulation to get out of lease.

Knowing Scott Wallace, he is not going to invest a lot of money fixing a place up that he doesn't have to, particularly if it's a leased property. I don't think that makes him different than other circuits such as Cinemark, UA, Loews, etc. that still have some real stinkholes that, because of their location, are still packing enough people in to make them profitable.

Unfortunately, I have a rather cynical view that most of the audiences out there still just plain don't care that much about quality (look at what they're going to see and what Hollywood is grinding out that they keep flocking to!!). Crappy theatres will still be around as long as people keep going to them.

Posted by Don Sneed (Member # 955) on 03-12-2003, 01:46 PM:

I can add something...Hollywood Theatres was a company started in Dallas, theatres in Texas, Oklahoma, Missiouri, Alabama, they built too many theatres, too fast, plus was buying up old theatres in the town they were building a megaplex to run off competion, a megaplex would closed doors on old theatres anyway, but money was short, Wallace brought and bale them out. when Hollywood theatres had the theatres, they were kept up, clean, ect....Wallace took over & booth parts stopped unless booth is down...pit-i-ful !!!

Posted by Bobby Henderson (Member # 840) on 03-12-2003, 06:31 PM:

I would agree with the part about a good number of people not caring at all about presentation quality. But I feel 100% right in saying ALL of those people are IDIOTS.

I feel like dumping a truckload of flyers in the Wallace Cache 8 parking lot in Lawton with the phrase: "if you are willing to pay $7.50 to watch a movie in this dump, you are f**king stupid."

The thing I can't understand is how distributors are willing to allow their product to be booked to play in such deplorable houses. Paramount made some noise last year about how they would pull their product from the Cache 8. Never happened.

I guess the only thing I can hope for is the theater catching fire and burning down to the ground.

Posted by Dominic Espinosa (Member # 2122) on 01-06-2004, 12:23 PM:

Ok, so I'm a little late...But here's some skinny on the matter.
Hollywood now owns Wallace. Scott sold it off to Steve Guffey around the same time this thread was started.
As a result costs have been cut big time on everything, including payroll.
I use to work for a 13 that did over 2 million in the first two years. This all in a town of just over 65,000. I was head projectionist there and we maintained a high quality presentation. Until we had no payroll to do our jobs. The ushers couldn't clean theaters since...well, there weren't any. They faxed a budget down that didn't include any payroll time for our ushers! In addition they eliminated the Movie Host position which the patrons really enjoyed at our location.
With the new pay cut and the increasing trouble with getting them to order parts such as xenon lamps in a timely fashion the projection booth went to hell.
Was that enough? Hell no! Let's fire the highest paid assistant manager at the location...FUN! The GM quit as a result and so did most of the management and floor staff.
Virtually the whole building turned over. Next they sent down an alchoholic violent jackass 21 year old to manage the place.
Now the theater does less than half of it's old business. People would rather drive to signature 37 miles away than come there.
There are quite a few intermissions now since the new projectionist they hired to replace me hasn't been able to keep a show off the floor for quite some time.
His reputation preceeds him in this way [Wink]

But I'm getting ahead of myself.
The fact of the matter is, Wallace Theaters does dirty things to avoid their obligations. Such as not paying employees for overtime. In other cases employees are punished for not calling in Coke orders by driving to the DC and picking up the order...Clocked out.
Does anyone else smell the dirtiness?

In South Lake Tahoe (their district office for California, Arizona, Nevada, and Montana) where Scott sued ACT III for some lunacy and gained controll of the company. The city has actually voted them out, when their lease is up, they're gone. Not to mention the city wont allow them into a vacant theater, they'd rather have it empty than have Wallace in it. Many places there have to hire outside of Tahoe will work on the theater (janitorial services and such) because they don't get paid for it!

My opinion of Wallace Theaters? F
And it's great since there are other ex-employees who share my opinion. It's kind of freaky.