Date: 12th October 2000
General Cinema is the latest exhibitor to wind up in bankruptcy court.
Its parent company, GC Cos., filed for Chapter 11 reorganization Wednesday, blaming the "over-saturation" of megaplexes in many markets.
While, unlike its rivals, the company did not build up huge debt in construction costs, it nevertheless saw many of its patrons flock to rivals who did.
In an interview with today's (Thursday) Wall Street Journal, Gail Edwards, GC's CFO, suggested that the construction binge has failed to attract more moviegoers. "With so many new theaters, all we're doing now is taking the pie and cutting it into smaller pies," she said.
The company recently was forced to close 36 unprofitable theaters with 264 screens. It said Wednesday that it plans to close another 17 theaters with 103 screens before the end of the month.
Source: Studio Briefing