The theater says it will remain open as it restructures its debt. Its filing comes as the industry continues to face headwinds.
Illustration: Inc; Photo: Adobe Stock
Listen to this ArticleMore info
0:00 / 0:00
A California movie theater chain’s megaplex has filed for Chapter 11 bankruptcy.
On Monday, Maya Cinemas Bakersfield announced that it had filed for Chapter 11 bankruptcy. The theater will remain open and maintain normal operations during the restructuring. Showtimes, tickets, gift cards, loyalty rewards, and its Tuesday Family Days promotion will continue without interruption, the company said in a release.
Movie theaters are investing billions in upgrades
The filing comes as movie theaters across North America invest in upgrades. According to Cinema United’s new Cinema Investment Report, theater owners have reinvested $2.7 billion in their cinemas over the past two years.
Much of this reinvestment is a response to changes in consumer behavior. According to the report, moviegoers are craving more in-person experiences.
Refreshed leadership advice from CEO Stephanie Mehta
“When a [theater] reinvests in itself, everyone wins—moviegoers get a better experience, studios get a stronger platform, local businesses benefit, and contractors get the work that comes with it,” Michael O’Leary, president and CEO of Cinema United, said in the report’s release. “Every investment in a movie theater is an investment in the community it serves, which is why moviegoing will remain essential for generations to come.”
Francisco Schlotterbeck, CEO of Maya Cinemas, said in a release that the Chapter 11 filing “gives us the room to put the Bakersfield theater on a stronger long-term footing while we keep doing what we love — bringing great movies to this community at prices families can afford.”
What Maya Cinemas owes
Maya Cinemas Bakersfield did not list a cause for the filing.