According to new reports, Regal Cinemas is in real trouble after its stock price dropped 80% on Friday, August 19th, 2022. Regal Cinemas is the second biggest theater chain in the United States and has been for quite some time. The company has over 7,200 screens in 549 theaters and has grown exponentially since it was founded. Regal Cinemas was founded in 1989 in Knoxville, Tennessee; however, The company has predecessors dating back to the 1920s.
Regal Cinemas’ first location was the Searstown Cinema in Titusville, Florida. Since then, the company has grown at a rapid pace with theaters all over the United States. In the 90s Regal worked on acquiring new companies and expanding theatres. They built multiplexes and high-scale theaters all over the country. Regal Cinemas comprises three companies, United Artists Theatres, Edwards Theaters, and Anschutz consolidation. They are currently owned by British company Cineworld Group, which has had tough times as of late.
According to the Wall Street Journal, British company Cineworld Group has spoken to lawyers about starting the bankruptcy process in the United States and the United Kingdom. Since Friday, August 19th, the stock price which dropped 80% has recovered a bit, but it is still 60% below what it was at the start of trading on Friday. This is not good news for Regal Cinemas, which has been hit hard by the pandemic. Across the board, a lot of people seem to seek their entertainment at home instead of going to the theaters. The crunch on Cineworld has been harsh, with recorded losses of $2.3 billion in 2020 and $566 million in 2021.
It’s sad to say it, but the times are changing. People just aren’t going to the movie theaters like before the pandemic. With streaming services and VOD, you can basically get everything you need at home for a reasonable price. Why go to the theaters like Regal Cinemas when you can stay at home and watch whatever you want on your beautiful HD TV? With that being said, there are still plenty of people who still love going to the theater. Although beverages and food are super overpriced it is still a fun experience to see a movie on the big screen. To be honest, the last movie I saw in the theaters was Spider-Man: No Way Home in December of 2021. I used to go to the theater all the time but since the pandemic, I just stopped going. I know certain films are best watched in the theaters, but I enjoy watching them at home as well, and I bet I’m not the only one. I do hope, however, that Regal cinemas and their parent company can bounce back.
Source: Wall Street Journal
