Encore: CMX Cinemas parent emerges from bankruptcy

Parent filed Chapter 11 in April

Miami /
Dec.December 10, 2020 06:02 PM
CMX emerges from bankruptcy after filing in April (Getty, Wheeling Town Center)

CMX emerges from bankruptcy after filing in April (Getty, Wheeling Town Center)

 

In perhaps a surprise twist, a movie theater chain gets a sequel.

Cinemex Holdings USA, the Miami-based parent of CMX Cinemas and owner of 41 movie theaters nationwide, has emerged from Chapter 11 bankruptcy protection.

The theater chain negotiated with creditors for six months and ended up with modified leases that include a revenue-sharing deal, according to The Miami Herald. The company shuttered 10 under-performing locations, including one in Hialeah.

The chain now includes seven theaters in South Florida, three in Illinois and one in Closter, New Jersey, according to its website. The South Florida theaters include CMX Downtown In The Gardens in Palm Beach Gardens; CMX Wellington; CMX Miami Lakes 17; CMX Brickell Dine-In; CMX CinéBistro CityPlace Doral; CMX CinéBistro Dolphin Mall and CMX Cinemas Dolphin 19 & IMAX.

The chain’s U.S. operations are led by Jose Leonardo Martí. The company is owned by Mexico-based Grupo Cinemex, which is led by Rogelio Vélez López de la Cerda.

Under the agreement, landlords will receive some revenue from movie tickets and food, according to the Herald. Before the bankruptcy protection filing, Cinemex paid 30 percent of revenue on leases and 60 percent to film studios. Landlords wanted a deal because the cinemas are too large to easily rent out and were built specifically to show movies.

The chain filed for Chapter 11 in April with more than $100 million in debt. The Brickell City Centre CMX theater is an anchor for the shopping center developed by Swire Properties. CMX opened the theater in 2017 and spent more than $15 million building out its Brickell location.

The future for theaters looks grim, with theaters across the country closed and studios sending new movies to streaming services. Last month, the owner of Regal Cinemas scored a $450 million loan from lenders to help the financially challenged movie theater chain stay afloat.

Nationwide, movie theaters paid just 38 percent of their October rent as of Nov. 5, dead last among retailers, according to a report by Datex Property Solutions.

[The Miami Herald]  — Wade Tyler Millward


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