Bad news if you’re a fan of CMX Cinemas… This movie theater chain is once again in trouble: filing for bankruptcy. This is the second time CMX Cinemas does it, but this time they are doing it under the Chapter 11 bankruptcy, a U.S. law that allows companies to keep active while reorganizing their debts. In this case, CMX Cinemas used the simple version of this law called Subchapter V to speed up the process of small businesses.
Although CMX has several cinemas in different places of the United States that will keep operating as usual, this is a news that has affected the movie industry once again. In the meantime, chains like CW Theaters offer more affordable prices and keep gaining new spectators. So, let’s find out more about this movie theater chain situation.
CMX Cinemas
This movie theater chain is known for offering a luxurious experience like food and drinks inside the cinema, but in this article we won’t talk about its features. What’s new about this chain is the fact that it has filed for bankruptcy for the second time in 5 years. It’s not new a company goes bankruptcy, but this one goes to the law to try and save its business. How do they do it?
Chapter 11
In the U.S., when a company is struggling with economic issues and wants to keep being active, it can file for bankruptcy under Chapter 11. This way the company won’t immediately close, instead it will be the beginning of a legal process to reorganize its debts and still offer a service.
However, CMX Cinemas used a special version called Subchapter V, which is much faster and less expensive than Chapter 11. Thanks to this version, small businesses can try to find a solution to these issues without stopping to work or closing.
What’s CMX’s take on this?
The company assures its 28 cinemas in 8 states of the U.S. will keep working as usual while they try to figure out how to deal with their financial issues. What’s more, they said their employees will be receiving their salaries, and their clients won’t notice any important changes by now.
So, if you were thinking about going to the movies at a CMX Cinemas, you wouldn’t need to worry about this problem affecting your experience, at least not now.
CMX Cinemas’ finances
The company says it has enough money to keep being active, and they expect to leave the bankruptcy situation by the third trimester of 2025 – between July and September. But, let’s talk about numbers according to the official document of bankruptcy:
- CMX has between $50 and $100 million in assets, which means the things they possess such as cinemas, equipment, etc.
- They also have between $1 and $10 million in debts or financial responsibilities.
Could the company be in trouble?
We don’t know what’s going to happen in the future, but it should be taken into account that there are other movie theater chains like CW Theaters offering lower prices:
- $7 per adult ticket everyday.
- $5 for specific groups such as kids, elderly people, soldiers, medical staff, etc.
The fact that there are other companies with cheaper prices makes people having a go to these movie theaters rather than to CMX, which can create a complex situation for CMX when it comes to attracting spectators. It’s true they offer you food and drinks inside the cinema, but are you willing to pay more if there are other cheaper options available? Maybe people would continuously go to CMX Cinemas on a whim, but on a regular basis people might go to cheaper movie theaters like CW Theaters, don’t you think so?