Miami-based Theater Chain Files for Bankruptcy
Cinemex Holdings USA, Inc. and Cinemex USA Real Estate Holdings, Inc. filed for bankruptcy protection and reorganization under Chapter 11 of the U.S. Bankruptcy Code in Miami, where the companies are based. It is reportedly the first theater chain, or retailer, to file for Chapter 11 as a result of the COVID-19 pandemic.
The company indicated the filing will help ensure the long-term viability of its business, including its ability to protect employees. CMX Cinemas operated 41 locations, 417 screens and had 2,750 employees.
Cinemex said, “We are in a state of complete uncertainty as to when we can re-open our theaters and when our customers will feel safe and secure in returning to them, given that there is presently no vaccine against the virus. We cannot forecast when — if ever — customer numbers will return to pre-crisis levels.”
The company said the COVID-19 pandemic caused the theater chain to completely suspend its business, resulting in no revenue being generated, while its fixed costs remained high.
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