US Major Theater Chain Regal Cinemas Considers Second Business Suspension Amid Consecutive Movie Release Delays

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Regal Cinemas, a major U.S. theater chain, is considering suspending operations in the United States and the United Kingdom due to the impact of the novel coronavirus (COVID-19), which has caused a series of movie release delays. After temporarily closing in March during the COVID-19 outbreak and reopening in August, the company is now considering closing again due to difficulties in generating profits.

According to the Wall Street Journal (WSJ) and others on the 4th (local time), Regal Cinemas' parent company, Cineworld Group, acknowledged that "nothing has been finalized yet" but confirmed that such measures are under consideration. Regal Cinemas is the second-largest theater chain in the U.S. and operates not only in the U.S. but also in the U.K. The current considerations include suspending operations in both the U.S. and the U.K.

The reason major theaters are facing such dilemmas is that the film industry is in crisis due to COVID-19. Cineworld Group reopened in August ahead of the release of director Christopher Nolan's new film Tenet. As the film was highly anticipated worldwide, there was hope that many audiences would visit theaters upon its release. However, the performance was weaker than expected, and theater operators are struggling.

Consequently, film studios are postponing movie releases one after another. Warner Bros., which failed to achieve success with Tenet, delayed the release of Wonder Woman 1984 from December 2 to the Christmas period on December 25. The day before, it was reported that the release of the 25th James Bond series, 007 No Time to Die, was postponed from November this year to April next year. Walt Disney also decided to delay the release schedules of major works such as Marvel Studios' Black Widow and Eternals.

The National Association of Theatre Owners in the U.S. expressed concern that "if this situation continues, 69% of small and medium-sized theater operators will file for bankruptcy or permanently close." In the case of Cineworld, sales in the first half of this year (January to June) dropped about 70% compared to the same period last year, recording $712.4 million.

This content was produced with the assistance of AI translation services.