The pandemic has taken a toll on movie theaters. Earlier this year, it was announced that the Los Angeles ArcLight Cinemas and Pacific Theatres would be closing for good, including the famous Hollywood Arclight multiplex on Sunset Boulevard and its iconic Cinerama Dome. The news upset cinephiles, and now here’s some more news that might not sit so well. AMC Theatres is in the midst of talks to acquire ArcLight Cinemas and Pacific Theatres venues.
AMC is the biggest theater chain in both the world and the United States, but that doesn’t mean they’re the best theater chain around. In fact, many AMC locations are, to put it bluntly, dumps. So the news that AMC is looking into buying the shuttered ArcLight and Pacific venues is bound to upset folks who cherish those institutions and don’t want AMC anywhere near them.
The Wrap reports that AMC “plans to raise $230.5 million for key acquisitions in the movie theater sector — and confirmed talks to acquire venues operated by the now-shuttered ArcLight Cinemas and Pacific Theatres.”
“Given our scale, experience and commitment to innovation and excellence, AMC is being presented with highly attractive theatre acquisition opportunities,” said AMC Entertainment CEO Adam Aron. “We are in discussions, for example, with multiple landlords of superb theatres formerly operated by ArcLight Cinemas and Pacific Theatres.”
The announcement that the ArcLight Cinemas and Pacific Theatres came in April, with their parent company Decurion stating:
“This was not the outcome anyone wanted, but despite a huge effort that exhausted all potential options, the company does not have a viable way forward. To all the Pacific and ArcLight employees who have devoted their professional lives to making our theaters the very best places in the world to see movies: we are grateful for your service and your dedication to our customers. To our guests and members of the film industry who have made going to the movies such a magical experience over the years: our deepest thanks. It has been an honor and a pleasure to serve you.”
AMC plans to raise the $230.5 million via a sale of 8.5 million shares to Mudrick Capital Management. AMC raised $100 million from Mudrick in December as part of a “debt offering for needed capital” while most of its theaters remained closed.
Recently, AMC stock has surged – but it’s worth noting that surge could be part of the Reddit-influenced run on AMC stock, something that happened earlier this year along with GameStop stock. That means this could all fall apart, but for now, AMC doesn’t seem worried. “This transaction underscores the real value of having some authorized share capital available for us to opportunistically capitalize on shareholder value creation possibilities as and when they arise,” said Aron. “With our increased liquidity, an increasingly vaccinated population and the imminent release of blockbuster new movie titles, it is time for AMC to go on the offense again.”
The post AMC Theatres Looking to Buy Closed ArcLight and Pacific Theatres Venues appeared first on /Film.
/Film – ‘Slash Film: AMC Theatres Looking to Buy Closed ArcLight and Pacific Theatres Venues’
Author: Chris Evangelista
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June 1, 2021