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» Cinematour Forum   » Cinemas in the News   » AMC / Kerasotes DOJ Sell-Off (Page 1)

 
This topic comprises 2 pages: 1  2 
 
Author Topic: AMC / Kerasotes DOJ Sell-Off
John J. Fink
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Posts: 123
From: Buffalo, NY
Registered: Aug 2005


 - posted May 22, 2010 12:23 PM      Profile for John J. Fink   Author's Homepage   Email John J. Fink         Edit/Delete Post 
Per the suntimes (http://blogs.suntimes.com/sweet/2010/05/justice_department_blocks_chic.html)

quote:
Under the terms of the proposed settlement, AMC must divest the following movie theaters: AMC Gardens 13 and Kerasotes Glen 10 (North Suburban Chicago); AMC Cantera 30 (Upper Southwest Suburban Chicago); Kerasotes Showplace 12 Bolingbrook (Lower Southwest Suburban Chicago); Kerasotes Colony Square 12 (Upper Northwest Denver); Kerasotes Olde Town 14 (Lower Northwest Denver); AMC Castleton Square 14 or Kerasotes Showplace 12 Glendale Town (North Indianapolis); and AMC Greenwood 14 (South Indianapolis).

In addition, for the next 10 years, AMC must inform the Antitrust Division if it proposes to acquire movie theatre assets in those markets.


Interestingly when I looked back at the theaters AMC/Loews was required to divest, they never sold a modern AMC-built stadium seating complex, the 1000 Van Ness is still owned by AMC, the other theaters were Loews, General Cinema and one 80's/early 90's era AMC. In that merger they sold theaters to Regal, Kerasotes, Phenoix Theaters and Sundance.

I am thinking that since the Brothers Kerasotes aren't leaving the theater business, they are selling off as a debt-free restart (sort of what Cobb did years ago), they may choose to keep a few of these sites/acquire some from AMC. Strange though that AMC has to put a 30-plex on the market, I can't imagine that'd be an easy sell in an era of 14-18 plexes.

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Adam Martin
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From: Dallas, TX
Registered: Feb 2003


 - posted May 24, 2010 06:55 AM      Profile for Adam Martin   Author's Homepage   Email Adam Martin         Edit/Delete Post 
Regal announced this morning an acquisition of 9 theaters from AMC in exchange for cash and two Regal theaters.

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Kyle Muldrow
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Posts: 143
From: Laguna Hills, CA
Registered: Jul 2003


 - posted May 24, 2010 09:49 AM      Profile for Kyle Muldrow   Author's Homepage   Email Kyle Muldrow         Edit/Delete Post 
Got a link to that, Adam? Curious to know which theaters are involved in that transaction.

UPDATE: Here's the press release from Regal's website: Regal acquires 9 theaters from AMC

The press release does not list the theaters involved, but it does say the transaction will enhance Regal's presence in Illinois, Indiana, and Colorado. It also does not say which two Regal theaters are being acquired by AMC.

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Jeff Arellano
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From: Monterey Park, CA
Registered: Jun 2003


 - posted May 24, 2010 10:09 AM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
Any speculations? I think somewhere east coast.

I did find this. These two theatres must be going to Regal:
quote:


Because that consent decree prohibits AMC from reacquiring either of those two theaters, Kerasotes City North 14 and Kerasotes Webster Place 11, this consent decree requires the sale of those theaters to a third party.

http://www.suburbanchicagonews.com/napervillesun/business/2305256,6_5_NA23_AMC_S1-100523.article

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Kyle Muldrow
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From: Laguna Hills, CA
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 - posted May 24, 2010 11:08 AM      Profile for Kyle Muldrow   Author's Homepage   Email Kyle Muldrow         Edit/Delete Post 
Sounds like that particular mystery is cleared up...thanks, Jeff!

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Scott D. Neff
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From: San Francisco, CA
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 - posted May 24, 2010 04:45 PM      Profile for Scott D. Neff   Email Scott D. Neff         Edit/Delete Post 
So if Regal acquired 9 theatres from AMC, and the City North and Webster are part of those 9, then who did the other two Illinois theatres go to?

And which Regals does AMC get out of the deal?

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John J. Fink
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From: Buffalo, NY
Registered: Aug 2005


 - posted May 24, 2010 09:40 PM      Profile for John J. Fink   Author's Homepage   Email John J. Fink         Edit/Delete Post 
Yes - City North and Webster Place are going to Regal per a poster at Cinema Treasures on the City North page (they received an e-mail letting them know AMC sold the theaters to Regal and Regal won't be offering the Five Buck Club).

As for the rest, I count 8 theaters that had to be sold plus these two which AMC would in effect be reacquiring, leaving a mystery theater out of the mix.

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Scott D. Neff
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From: San Francisco, CA
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 - posted May 25, 2010 09:10 AM      Profile for Scott D. Neff   Email Scott D. Neff         Edit/Delete Post 
The transaction is complete. This link shows a list of the theatres that AMC acquired.

http://www.amcentertainment.com/welcome/

After changing all the Kerasotes Theatres listed on AMC's welcome page to AMC Theatres I have come up with the following theatres that AMC is not claiming:

Olde Towne 14 - Arvada, CO
Colony Square 12 - Louisville, CO
Showplace 12 - Bolingbrook, IL
Cottonwood Cinema - Glen Carbon, IL
Glen Town Center 10 - Glenview, IL
White Oaks Cinema 3 - Springfield, IL
Showplace 12 - Columbus, IN

And then of course the two already announced to Regal, Webster Place and City North.

[ May 25, 2010, 11:17 AM: Message edited by: Adam Martin ]

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Jeff Arellano
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From: Monterey Park, CA
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 - posted May 25, 2010 12:42 PM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
AMC Greenwood 14 to Regal. Confirmed. This is theater #3.

Sorry Adam can't post article due to me using my BlackBerry.

Here is the article:
http://www.ibj.com/amc-sells-greenwood-theater-to-regal/PARAMS/article/20145

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Scott D. Neff
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 - posted May 25, 2010 06:55 PM      Profile for Scott D. Neff   Email Scott D. Neff         Edit/Delete Post 
Looks like AMC either noticed their mistake or decided that until everything is final with Regal to claim those remaining theatres I posted were unclaimed.

Glad they have an owner now... poor guys musta felt left out and abandoned.

Now just wondering what happened to the following theatres:

Cottonwood Cinema - Glen Carbon, IL
White Oaks Cinema 3 - Springfield, IL

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Jeff Arellano
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From: Monterey Park, CA
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 - posted May 26, 2010 11:02 AM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
#4 - Glen 10 is now Regal, even though on Fandago it lists it as AMC:

http://www.chicagotribune.com/news/local/northnorthwest/chi-glen-10-100524,0,3120499.story
quote:
When Regal Cinemas assumes ownership of Kerasotes The Glen 10 theater in Glenview, the name will change, but little else.

"It will be a seamless transition," said Tom Sikoral, senior general manager of The Glen Town Center. "The consumer isn't even going to notice."

Regal, based in Knoxville, Tenn., will become the new owner of The Glen 10 once Kansas City-based AMC Entertainment Group Inc. takes over most Kerasotes Showplace Theatres.


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Scott D. Neff
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From: San Francisco, CA
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 - posted May 26, 2010 09:31 PM      Profile for Scott D. Neff   Email Scott D. Neff         Edit/Delete Post 
It mentions the Garden 13 in Skokie... I can't imagine anybody wanting that theatre. One is an old Cineplex Odeon and the other is a Loews built addition to that complex. Two separate ends of an outdoor mall. I'm sure AMC would be doing themselves an overhead favor to sell that off, no matter how much money it might make.

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John J. Fink
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From: Buffalo, NY
Registered: Aug 2005


 - posted May 27, 2010 03:24 PM      Profile for John J. Fink   Author's Homepage   Email John J. Fink         Edit/Delete Post 
It should be noted that AMC has a couple of sites that don't fit their business model to work with. To my knowledge AMC doesn't have a second run discount house - which other chains like Cinemark and Starplex find profitable - now they do (Fort Collins, Co - Supersaver 8). They also now many rural twins and even a single screen (Kennet, MO) - all of which don't have online ticketing (I don't know if they have a computerized box office either).

Hilariously though AMC still finds the need to put a number next to the name of the complex. It's funny to think AMC once sold off profitable theaters like the Morristown, NJ Headquarters 10 because it was "too small", and now they have they've inherited theaters that are in very small markets that I imagine do well enough to support themselves.

In that respect I think the brothers Kerastoes were like small time, independent operators until the private equity funding came in and they started building and buying big multiplexes.

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Jeff Arellano
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From: Monterey Park, CA
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 - posted May 27, 2010 08:21 PM      Profile for Jeff Arellano   Email Jeff Arellano         Edit/Delete Post 
The last dollar theaters AMC had that I could remember were all here in So Cal, and all closed in the late 90's.

AMC Chino 10
AMC Plaza 10 and Puente 6 and 4 at one point
AMC Alondra 6
AMC Mainplace 6
AMC Orange Mall 6

AMC also at one point did run the non computerized AMC Fine Arts 1. So these would be nothing new to AMC but I'm sure don't follow the model today.

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Scott D. Neff
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From: San Francisco, CA
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 - posted May 28, 2010 08:51 AM      Profile for Scott D. Neff   Email Scott D. Neff         Edit/Delete Post 
I get the feeling there will be a few phone calls placed to Carmike about those rural markets. After they don't want them I'd predict it would be a great time to be an aspiring theatre operator if you live near any of those towns.

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