The impact of Cineworld’s bankruptcy continues to play out with theatre closures announced for an additional 39 Regal Cinemas across the U.S. These sites include several marquee locations such as Union Square in New York City, Fenway Park in Boston and Sherman Oaks in Los Angeles, which Regal had taken over from ArcLight only 18 months ago.
Most of the locations were deemed to have unaffordable leases relative to their attendance and revenue. The closures are estimated to save Cineworld $22 million annually, which is essential to the exhibitor’s long-term survival. Regal had already closed 11 locations shortly after declaring bankruptcy last September.
Of course, not all theatres that Regal vacates will remain closed permanently, as mid-sized exhibitors with more financial flexibility swoop in to pick up these locations. One example is Regal’s former 12-screen theatre in Niagara Falls, which will see new life as the newest Dipson Theatre location.
The local cinema chain will rename the theatre to the Capitol Theatre 12, using the name of the original theatre which opened in Niagara Falls in 1926. Dipson also announced that ticket prices would be lowered from Regal’s average of $13-19 to a budget-friendly $8. Dipson’s Owner Mike Clement summed up his reason for the price cut by saying, “$19 to see a movie in Niagara Falls is not sustainable. This is not New York City.”
See also: Regal Cinemas signs come down, as Dipson prepares to take over Niagara Falls theater (Niagara Frontier Publications)