Metrolux parent company files for bankruptcy protection
LOVELAND — The parent company of the companies that operate the movie theaters in Loveland has filed for bankruptcy.
Family-owned Metropolitan Theatres Corp., based in Los Angeles with 16 theaters in California and Colorado. including two IMAX theaters, filed for Chapter 11 bankruptcy protection on Feb. 29 in the California Central District Bankruptcy Court.
It said it has between $1 million and $10 million in assets and between $10 million and $50 million in liabilities. The bankruptcy comes as the theater industry is still attempting to recover from the pandemic closures of public places that caused immediate revenue losses, labor disruption in the movie industry, changed consumer behavior and increased competition.
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Listed among the creditors were two landlords of the theaters in Loveland: Foundry Theatre LLC, which lists a Fort Collins address on Precision Drive, and Promenade Shops 10220472 LLC, which has a New York address. Foundry was owed $31,560 at the time of the filing; Promenade was owed $24,410.
The largest listed creditors were Texas-based Independent Bank, with $1.9 million outstanding, and Aegon USA Realty Advisors Inc. of Cedar Rapids, Iowa, with $739,048 owed.
Not listed among creditors was the city of Loveland, which provided in August 2020 a $200,000 incentive agreement to Metropolitan in order to incentivize construction of an IMAX theater in the Promenade Shops location in Centerra. The city also waived $50,000 in building-permit fees and use taxes. David Corwin, president of Metropolitan, said at the time that the theater company would pay 94% of the development costs of the IMAX.
The incentive agreement, according to documents shared with the City Council at the time, had provisions for a clawback if the theater closed prior to four years from when it received its certificate of occupancy. All of the incentive would come back if it closed within one year, and each successive year would see less returned, down to $50,000 if it closed within four years of opening. The theater opened in February 2023.
Corwin told BizWest Thursday morning that the bankruptcy will be used to restructure and reduce cost.
“Industrywide, last year was 20% better than 2022 but it’s still 20% below 2019,” Corwin said.
“It’s been a tough four years for the industry. I don’t think there was any other industry impacted as much as ours. Then, when things reopened, there was limited product to show. There’s a direct correlation between the number of films and revenue.
“Then came the strike, which delayed movies by a year. During the pandemic, a half dozen streaming services were launched; studios now are coming to grips with the importance of the theatrical release. Certainly long term we believe the industry will get back to where it’s been,” Corwin said.
He said that the company does not have plans to close any theaters, but a lot depends on the circumstances of the landlords where the theaters are located. He noted that Metropolitan was unable to negotiate a new lease in Aspen when its lease expired in 2022.
The bankruptcy action is Metropolitan Theatres Corp., case number 2024bk11569 filed Feb. 29, 2024, in the California Central District Bankruptcy Court.
