In a decision that has just recently been made, Cineworld, the parent company of Regal Cinemas, has decided to shutter all of its U.S., United Kingdom and Ireland theaters. In a move that comes a day after the announcement that the next James Bond film would be delayed by another five months, now opening in April 2021, it is official that the U.S.’ second-largest cinema chain will close immediately.
While this news shouldn’t be surprising, it arrives after the delays of major motion pictures like Wonder Woman: 1984, F9 and Black Widow, just to name a few. The news also follows the disastrous domestic box office performance of Christopher Nolan’s Tenet, which has made only $41 million in the four weeks it’s been out.
Regal Cinemas is the second-largest theater chain in the U.S., only behind AMC theaters, with 543 locations. Cineworld/Regal Cinemas is the first major theater chain to announce the closures of its theaters. It should be expected, though, that AMC theaters will follow suit, as it has burned through its cash and only has a few months of cash-flow left. This is another example of how the coronavirus pandemic has clawed the box office and has left the movie industry in critical condition.
While no date has been given for a re-opening, it can be assumed that December would be the earliest it could reopen, but it wouldn't be shocking if the chain stays in limbo until spring of 2021. With no new movies released, and 25% of the U.S. theater market still closed, Regal Cinemas is losing money every day it is in business. The movie industry is only one victim of this announcement, as unemployment will soon rise when 10,000+ employees are let go from the company — a number of employees so large and a business so important that it would be a miracle if the economy wasn’t tremendously impacted.
