Tuesday, January 19, 2010

Kerasotes Sells Theaters to AMC...But Not New Roosevelt Collection Theater

A reader just commented about this transaction and sure enough it seems to be true. According to Crain's Kerasotes has agreed to sell 93 of it's 96 regional theaters to AMC. However, it seems like they're holding on to the new ICON theater that just opened in the South Loop recently:
AMC will take over 93 of Kerasotes’ 96 movie theaters. Tony and Dean Kerasotes will continue to own and operate the ShowPlace Icon theater that opened in December on Roosevelt Road near Clark Street. The men will also retain an Icon theater in Minneapolis and a ShowPlace theater in Secaucus, N.J.
Is this a good thing or a bad thing? Our initial read is that they (Kerasotes) values the new theater, which is a good thing. What do you think?


Tim said...

I'm not an expert, but to me it looks like they're cashing in at a time when movie theaters are doing well (despite the recession) in order to focus on the new trend of high end theaters.

Of the new theaters with that concept (Muvico in Rosemont and Gold Class in South Barrington come to mind), I think Icon's balance (i.e. not every theater is VIP, lounge is a draw on its own, urban location) gives it an advantage. After seeing the crowds on my two visits there, I'm not worried one bit.

Joel Shea said...

I've conflicted about this. While I really do not like the idea of one company owning every movie theater in the country (AMC also bought Loews a few years ago), I wish that I could use the cheap AMC tickets that you can buy at Costco at the ICON.

I guess I'm not that conflicted, actually. I don't like it, but would have been okay with the move had it benefited me. I guess this says a lot about me.

Anonymous said...

It's only a matter of time before these ICON theaters are also sold to AMC; Kerasotes will realize that it's way too costly to operate these three theaters. Once sold, it will not be good as AMC is not going to want to diminish its established product and good will at the River East locale.

Lance Uppercut said...

I'm not a huge fan of AMC Theaters but they must be running a fiscally responsible business as they are one of the four big chains (out of about 12 total) that didn't do bankrupt in the last 10 years.

Kerasotes ran some pretty ratty screens here in the Midwest and when they started to feel the pinch of the bad economy, AMC moved in. It's called business.

I find myself at indie/revival theaters more often than not so the prospect of AMC having a quasi-monopoly on showing shitty current movies doesn't really bother me. AMC lost me a a customer when the transitioned to digital projection.