Film-Tech Forum ARCHIVE: Regal to buy Movico

my profile | my password | search | faq & rules | forum home

»	Film-Tech Forum ARCHIVE » Operations » Ground Level » Regal to buy Movico (Page 1)

This topic comprises 2 pages: 1 2

Author

Topic: Regal to buy Movico

Thomas Dieter
Expert Film Handler

Posts: 234
From: Yakima, WA
Registered: Jun 2004

posted 02-05-2007 12:26 AM

It's my understanding that Regal Cinemas is in the negotiation stages of purchasing the Movico Chain. Our representative that does our carpet cleaning stopped in and setup their date to come in and mentioned this, as Muvico won't give them a yes or no until the deal is signed and has a press release or vetoed. Does anyone have information on this?

[ 02-06-2007, 01:01 PM: Message edited by: Thomas Dieter ]

| IP: Logged

John Joseph Fink
Film Handler

Posts: 60
From: West Hartford, CT
Registered: Feb 2006

posted 02-05-2007 06:15 AM

I haven't heard anything on this but this is odd for Regal, they ussually don't position themselves to upscale movie goers the way National Amusements and Muvico do with bars and expanded snack offerings. From what I understand Muvico's lounge in Bocca is very successful, would Regal close, I seem to remember them saying they are only in the "movie and snack bar business" that they don't focus on extended menu offerings.

Secondly, if they bought Muvico, Regal would take over the Medowlands Xanadu, some 4 miles away from where Regal tried to open two theaters in the low income neighborhood of North Bergen, Nj a few years ago. The 13-screen Bergen Plaza was a discount house less than a year after it opened, the 12-screen Columbia Park was later sold to a discount opperator. Xandu is a better location but I'd hope the larger than life Muvico sites would have their own brand idenity in the circut the way that The Bridge and the other Cinema De Lux sites do in National Amusement's chain.

| IP: Logged

Dennis Benjamin
Phenomenal Film Handler

Posts: 1445
From: Denton, MD
Registered: Feb 2002

posted 02-05-2007 10:23 AM

I know that Muvico has been up for sale. I am not suprised by this. With Regal's business plan and some of those Megas that Muvico operates - it's a win win situation. As far as Muvico's future locations - I am sure the Regal Real Estate team can spin the leases. Not to mention they can shed any unwanted locations in the next bankruptcy. [puke]

| IP: Logged

Lyle Romer
Phenomenal Film Handler

Posts: 1400
From: Davie, FL, USA
Registered: May 2002

posted 02-06-2007 09:27 AM

Although this is certainly possible as Muvico is up for sale (hence the big fight between the board and the CEO that was fired) and they were working on a deal with AMC a couple of years ago, I doubt the carpet cleaning guy would be privy to these negotiations.

The one in Boca Raton and the one in Davie do astronomical business. $12+ million a year in box office.

Muvico also has locations like Ybor City in Tampa that don't do very much business at all but cary huge debt service because of the very high construction cost.

| IP: Logged

Thomas Dieter
Expert Film Handler

Posts: 234
From: Yakima, WA
Registered: Jun 2004

posted 02-06-2007 01:01 PM

I'm not saying that the person that came into schedule our cleaning was correct, or that they are in on the negotiations. This was information she got from the GM of a theatre that she was trying setup a new account with Muvico, but if Regal were to buy them out they would keep their contract and Regal would want them to do all their carpet in Florida.

| IP: Logged

Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001

posted 02-06-2007 03:41 PM

I'm kind of surprised to see this Muvico buy-out news. Regal is selling any theaters it has in Oklahoma.

The company opened the Crossroads 16 near Crossroads Mall in the southern part of Oklahoma City a few years ago. The Mall itself is in very serious decline. Competition from other malls is fierce and the immediate area around Crossroads Mall is dangerous. A few miles farther south along I-35, Warren Theaters is finally building their new luxurious and huge Warren 20 in Moore, OK. All those factors seem to spell near certain doom for the Crossroads 16 theater.

The last theater chain to do a complete pull out from Oklahoma: General Cinemas. They went out of business not long after that.

| IP: Logged

Cory Isemann
Jedi Master Film Handler

Posts: 500
From: White Plains, MD, USA
Registered: Jun 2004

posted 02-06-2007 04:56 PM

quote: Bobby Henderson
Regal is selling any theaters it has in Oklahoma.

Crossroads was the only Regal in OK. It wasn't a bad theatre. It's now an AMC.

| IP: Logged

Dennis Benjamin
Phenomenal Film Handler

Posts: 1445
From: Denton, MD
Registered: Feb 2002

posted 02-06-2007 07:22 PM

quote: Cory Isemann
Crossroads was the only Regal in OK. It wasn't a bad theatre. It's now an AMC.

If it wasn't for certain laws put in place Regal and AMC would have merged already.

I give it less than ten years before a merger comes up between these two. Hell, in twenty there may be only one major theatre chain in the U.S.

| IP: Logged

Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001

posted 02-07-2007 08:55 AM

...if there are any movie theater chains left.

Some of the hair-brained ideas various widget-selling business people keep floating (such as releasing movies on video the same day they appear in theaters), combined with certain trends in technology, make the long term view more than a bit scary.

| IP: Logged

Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004

posted 02-07-2007 09:26 PM

...that makes one wonder then if the Gov't will step in to control any of these potiental monopolies...as they did with MaBell...

| IP: Logged

Christopher Crouch
Expert Film Handler

Posts: 128
From: Holywood, ca, usa
Registered: May 2006

posted 02-07-2007 10:43 PM

Or, the mega companies(company) find themselves too bloated to adapt/adjust with changing technologies, market trends, financial demands, etc. at an acceptable rate.

As easily as I could picture the industry consisting of a monopoly, I could picture a "super" company imploding under it's own size and the industry returning to smaller, market tailored companies.

| IP: Logged

John Joseph Fink
Film Handler

Posts: 60
From: West Hartford, CT
Registered: Feb 2006

posted 02-08-2007 08:00 PM

Should we be afraid that Sumner Redstone wants his daughter to sell National Amusement's theaters (she claims the future is in going upscale and therefore is building Cinema De Lux sites). I'd hate to see AMC and Regal controll everything, but it seems to be moving towards a total consolidation. There are a few regional players that I don't think would "sell out" - Bow Tie Cinemas is one, a growing chain that also is attempting to make cinema going more upscale. But, in the view of Regal, I think, they don't view film going as an upscale activity - most weatlhy people likely have large screen TVs and may perfer DVD. AMC it should be noted in NJ has only changed signs at their former General Cinema and Loews sites, which is unfortunate since a good number of Loews sites were in poor repair and still are. Shortening the DVD window, thus taking the emphisis off of the movie going experience is indangering the cinema, I hope its stopped or curbed. It's one thing when a small indie film that most people wouldn't have been aware of or had access to at their local multiplex is on DVD, HD Net or IFC on demand while its at the IFC Center, but its another when a major Hollywood movie is on DVD only a few months after it plays in theaters. At the same time Muvico, Cinema De Lux, and Hamid Hashemi's iPic should be recongized as the future in exhibition, AMC only opperates sites like this from GC/Loews mergers (outside of their Buckhead Backlot), Regal as far I know does not.

| IP: Logged

Scott Jentsch
Phenomenal Film Handler

Posts: 1061
From: New Berlin, WI, USA
Registered: Apr 2003

posted 02-17-2007 09:31 PM

This may be of some interest, in regards to this thread:

Regal to take over Pointe Orlando theaters
Orlando Business Journal - 8:32 AM EST Friday, February 16, 2007

quote:
Regal Entertainment Group will take over the 21-screen theater complex at Pointe Orlando effective March 1, according to New Plan Excel Realty Trust Inc., the owner and operator of the lifestyle center.

The theaters will be closed until early summer for renovations, including the installation of Imax motion picture equipment. The current operator, Fort Lauderdale-based Muvico Theaters, had originally installed the oversized projection system and screen, but removed the equipment in March 2001.

The theater includes 67,726 square feet and 3,300 stadium-style seats. The current ticket tower is also being relocated to the first floor with an adjacent vehicle drop-off and pick-up area for easier access.

Pointe Orlando is in the middle of a $40 million renovation that has already seen four new restaurant additions. Five more restaurants and at least five new retail locations will be opening by the end of the summer.

New Plan (NYSE: NXL) is a self-administered and self-managed REIT, with a national portfolio of 477 properties, including 175 properties held through joint ventures, and total assets of approximately $3.5 billion.

Regal Entertainment Group (NYSE: RGC) is the largest motion picture exhibitor in the world, operating theaters under the Regal Cinemas, United Artists Theatres and Edwards Theatres brands. They operate 6,403 screens in 39 states and the District of Columbia, about 18 percent of all indoor screens in the United States including 11 theaters in Central Florida.

| IP: Logged

Scott D. Neff
Theatre Dork

Posts: 919
From: San Francisco, CA
Registered: Oct 1999

posted 02-19-2007 06:51 PM

That sounds like a lease issue. Perhaps the landlord wanted Muvico out and a more friendly operator in.

| IP: Logged

Matt Kerekes
Film Handler

Posts: 73
From: Rio Rancho, NM
Registered: Oct 2004

posted 03-09-2007 10:28 AM

Does anyone else want to see Regal STOP expanding as much as they are?

| IP: Logged

All times are Central (GMT -6:00)

This topic comprises 2 pages: 1 2

Printer-friendly view of this topic

The Film-Tech Forums are designed for various members related to the cinema industry to express their opinions, viewpoints and testimonials on various products, services and events based upon speculation, personal knowledge and factual information through use, therefore all views represented here allow no liability upon the publishers of this web site and the owners of said views assume no liability for any ill will resulting from these postings. The posts made here are for educational as well as entertainment purposes and as such anyone viewing this portion of the website must accept these views as statements of the author of that opinion and agrees to release the authors from any and all liability.