Regal Cinemas sites in Augusta, Brunswick among 536 to close temporarily
Photo / Maureen Milliken
The Regal Cinemas at 23 Marketplace Drive in Augusta will be quiet for a while.
Regal Cinemas in Brunsick and Augusta are among 536 nationwide being closed temporarily by U.K.-based owner Cineworld Group plc, which cited financial struggles amid COVID-19 as it considers options for raising liquidity.
The company on Monday announced the suspension of operations at all of its Regal theaters in the United States, as well as 127 Cineworld and Picturehouse cinemas in the United Kingdom as of this Thusday, without giving a target reopening timeline.
"As major U.S. markets, mainly New York, remained closed and without guidance on reopening timing, studios have been reluctant to release their pipeline of new films," the company said in a news release.
"In turn, without these new releases, Cineworld cannot provide customers in both the U.S. and the UK — the company's primary markets — with the breadth of strong commercial films necessary for them to consider coming back to theaters against the backdrop of COVID-19."
The company said the closures will have an impact on about 45,000 employees. It's not yet clear how many in Maine will be affected.
"This is not a decision we made lightly, and we did everything in our power to support safe and sustainable reopenings in all of our markets," Mooky Greidinger, CEO of Cineworld, said in a statement.
"Cineworld will continue to monitor the situation closely and will communicate any future plans to resume operations in these markets at the appropriate time, when key markets have more concrete guidance on their reopening status and, in turn, studios are able to bring their pipeline of major releases back to the big screen."
The company said its main priorities remain the safety of customers and employees, cash preservation and cost reduction. It also reiterated that it is assessing several sources of additional liquidity and considering all options for raising liquidity.
Interim results for the six months through June 30 showed a grim picture for one of Europe's largest cinema groups amid theater closures during COVID-19.
The report, released Sept. 24, showed a 67% drop in group revenue over a year earlier to $712.4 billion and a 93% drop in adjusted EBIDTA to $758.6 million.
The company said in that announcement that management's main priorities have been keeping customers and employees safe, preserving cash and reducing costs.
Originally a private company, Cineworld re-registered as a public company in May 2006 and listed its shares on the London Stock Exchange in May 2007.
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