Regal Cinemas' nationwide closures another financial blow to suburbs
Delays with the release of big-budget Hollywood films - the latest is the James Bond franchise's "No Time to Die" postponed until April - could be the death knell for suburban cinema houses and result in more lost revenue that further strains communities.
Regal Entertainment Group, the nation's second-largest cinema chain, announced Monday it temporarily will close 536 theaters nationwide Thursday after reopening in August, according to news reports. That includes Regal cinemas in Crystal Lake, Lake Zurich, Lincolnshire, Round Lake Beach, and Warrenville.
"This does have a big impact on us," Lincolnshire Village Manager Brad Burke said of the anticipated loss of $200,000 in admission, sales and food and beverage tax revenues from the theater's closure. "This news obviously will be taken into consideration as we put together our budget for 2021."
COVID-19 pandemic-related business shutdowns and revenue losses are expected to create a $3 million shortfall this fiscal year, Burke said.
The 20-theater Regal Cinema and IMAX is part of the Citypark at Lincolnshire development on the southwest corner of Milwaukee Avenue and Aptakisic Road. It also is home to unique boutiques, a variety of restaurants, miniature golf, ceramic painting and outdoor summer concerts.
Movie ticket sales alone typically generate up to $175,000 in yearly revenues for the village, Burke said.
Lincolnshire relies heavily on hotel, food and beverage, sales and entertainment taxes to fund operations. Since the pandemic hit, officials have curbed expenses, including imposing a hiring freeze, not filling vacancies, delaying certain capital projects, and spending only on essential services, he said.
Village board policy requires maintaining 75% of operating expenses in reserve.
"That provides an additional cushion," Burke said.
He said he hopes Hollywood starts releasing new movies soon so shuttered theaters can reopen in his and other communities, "especially now that people are able to go and attend."
"People in general are looking for things to do. It's a great amenity to have in town," Burke said.
Regal Cinemas hasn't made any statements regarding when its theaters would reopen.
Shares in Cineworld Group Plc, the parent company that owns 663 Regal, Cineworld and Picturehouse movie theaters in the U.S. and U.K., fell roughly 58% after Monday's announcement about closing venues in both countries, affecting 45,000 employees.
Shares in AMC Entertainment also fell 10% after Cineworld's news. AMC Theatres is the world's largest cinema operator. It lost $561 million last quarter due to the pandemic, according to news reports.