Pandemic hurting industry
The spat comes as both companies grapple with an uncertain return to business after most movie theatres were forced to close by public health regulators earlier this year.
Cineplex stopped movie screenings in mid-March at all of its 165 theatres nationwide and has yet to outline a plan to resume operations. Even still, industry observers are uncertain how quickly cinemas can return to business as usual, since they will need to introduce physical distancing into the auditoriums, which means fewer tickets sold.
Hollywood has also been reluctant to get its engines running again over concerns that few people would show up to their big-budget blockbuster hopefuls. On Friday, Warner Bros. pushed the anticipated release of Christopher Nolan’s Tenet, one of few big summer movies still on the schedule, back two weeks to July 31.
A Cineplex is seen closed due to the COVID-19 pandemic in Charlottetown on March 18. (Brian McInnis/CBC)
Right from the start of the pandemic, Cineplex acknowledged that COVID-19, and government reactions, had made «business planning uncertain for the exhibition and location-based entertainment industries.»
Other parts of the Cineworld deal still hadn’t been met, including approval from Investment Canada, which had been delayed from the start of the month until June 15.
Several other conditions applied to the acquisition, including that Cineplex kept its debt below $725 million.
Canadian theatre chain denies allegations it made ‘certain breaches’ of contract
The Canadian Press · Posted: Jun 12, 2020 6:39 PM EDT | Last Updated: June 13, 2020
Cineplex had agreed to a friendly takeover by Britain’s Cineworld, which now says the deal is off. (Ben Nelms/CBC)
International movie theatre chain Cineworld PLC says its deal to buy Cineplex Inc. for $2.8 billion is off, claiming that «certain breaches» of the contract were made by the Canadian company.
But Cineplex fired back late Friday, insisting the allegations of wrongdoing are false, and vowing to see Cineworld in court in a battle over damages.
The sudden disagreement sets the scene for what could be a dramatic showdown between two movie exhibition giants in the midst of a viral pandemic that’s forced their theatres to shut down.
Cineworld, which is headquartered in London, says it became aware of a material adverse effect and breaches by the Toronto-based Cineplex, which led it to scrap the deal before a looming June 30 deadline.
However, it did not outline the specifics of its allegations in a statement, and a Cineworld representative would not answer questions. Cineworld said it complied with its obligations and will «vigorously defend any allegation to the contrary,» and seek damages.
A Cineworld cinema is seen closed due to the COVID-19 pandemic in Southampton, U.K., on April 19. (Naomi Baker/Getty Images)
Cineplex issued its own statement, saying that it believes there is «no legal basis» to terminate the agreement, and that it is Cineworld that has breached the contract. It said the contract explicitly excludes «outbreaks of illness or other acts of God» from what would be considered material adverse effects of the deal.
«Cineplex believes that Cineworld’s allegations represent buyer’s remorse, and are an attempt by Cineworld to avoid its obligations under the in light of the COVID-19 pandemic,» the company said.
The Canadian exhibitor added that it «intends to commence legal proceedings promptly against Cineworld and seek damages.»
A representative for Cineplex declined to comment further.
Pandemic hurting industry
The spat comes as both companies grapple with an uncertain return to business after most movie theatres were forced to close by public health regulators earlier this year.
Cineplex stopped movie screenings in mid-March at all of its 165 theatres nationwide and has yet to outline a plan to resume operations. Even still, industry observers are uncertain how quickly cinemas can return to business as usual, since they will need to introduce physical distancing into the auditoriums, which means fewer tickets sold.
Hollywood has also been reluctant to get its engines running again over concerns that few people would show up to their big-budget blockbuster hopefuls. On Friday, Warner Bros. pushed the anticipated release of Christopher Nolan’s Tenet, one of few big summer movies still on the schedule, back two weeks to July 31.
A Cineplex is seen closed due to the COVID-19 pandemic in Charlottetown on March 18. (Brian McInnis/CBC)
Right from the start of the pandemic, Cineplex acknowledged that COVID-19, and government reactions, had made «business planning uncertain for the exhibition and location-based entertainment industries.»
Other parts of the Cineworld deal still hadn’t been met, including approval from Investment Canada, which had been delayed from the start of the month until June 15.
Several other conditions applied to the acquisition, including that Cineplex kept its debt below $725 million.
Cineworld struck the takeover deal for Cineplex long before COVID-19 had rattled the movie industry. Late last year, it offered to buy the company at $34 per share, a 42 per cent premium on the chain’s stock price at the time.
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Кинотеатры
По всему миру Cineworld estate. есть семь различных способов, которыми их клиенты могут смотреть фильм: 2D, 3D, 4DX, IMAX, Superscreen, VIP и ScreenX. Цены устанавливаются в соответствии с форматом, выбранным клиентом, а не с фильмом, который он выбирает. По состоянию на апрель 2018 года в европейском поместье насчитывалось 38 экранов 4DX, 35 экранов IMAX и 12 VIP-залов. Из 45 кинотеатров в мире, оборудованных IMAX с лазерными проекционными системами, два находятся в Великобритании, оба принадлежат Cineworld, расположенным на Лестер-сквер и Шеффилд. В апреле 2018 года IMAX и Cineworld Group подписали соглашение об установке 55 новых IMAX с возможностью работы с лазером в локациях Cineworld и Regal IMAX.
В 2012 году Cineworld начала пробную версию услуги премиум-класса The Screening Rooms. Расположенный рядом с кинотеатром Cheltenham, The Screening Rooms предлагает значительно большие кожаные кресла, питание премиум-класса и обслуживание за столиками.
Cineworld была единственной сетью кинотеатров в Великобритании, которая работала «строгая политика запрета еды и напитков» в отношении товаров, купленных в других местах, но в ноябре 2012 года политика в отношении продуктов питания была изменена и теперь гласит, что «в помещения нельзя приносить алкоголь или горячую пищу». В начале 2014 года Cineworld представила систему распределенных сидений, которая началась в качестве пробной на выбранных площадках, включая Уэмбли, и к лету будет развернута во всех кинотеатрах. Этот шаг вызвал споры, и против этой политики была организована кампания в Твиттере. Cineworld ответила на критику, заявив, что она дает клиентам душевное спокойствие, а также другие преимущества.
Cineworld продолжает расширять и улучшать свое имущество, осуществляя обширную текущую программу строительства и ремонта. В 2017 году компания открыла девять новых кинотеатров на 109 экранов; четыре из которых были в Великобритании и пять в остальной Европе. Кроме того, в 2018 году планировалось открыть еще 75 экранов. В течение 2018 года компания открыла 13 новых точек со 108 экранами в общей сложности: шесть в США, шесть в Великобритании и один в Румынии.
