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Kerasotes sells theaters to Kansas City’s AMC
posted by
CinemarkFan
on
January 20, 2010 at 11:30 am
CHICAGO, IL — Kerasotes Showplace Theatres LLC, have announced that they (with the exception of three theatres) will be bought by AMC Entertainment.
Providence Equity Partners, which became a majority owner of Kerasotes Showplace Theatres in 2003, wanted to cash out of its investment, said Jim DeBruzzi, Kerasotes Showplace’s chief financial officer.
“We put a line in the water,” he said, and AMC appeared as a suitor.
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 brothers will also retain an Icon theater in Minneapolis and a ShowPlace theater in Secaucus, N.J.
Read more in the Chicago Business Journal.
Comments (8)
Chicago is going to be an issue with the sale given that Kerasotes acquired two properties in the city as a result of the DOJ’s ruling on the AMC/Loews Cineplex merger. I’m not sure in what other territories it’ll be an issue- any one have any thoughts about overlapping?
Also not all Kerasotes theaters are high tech stadium seating Showplace concepts – they own a few older single and two-screen theaters as well, some perhaps in rural areas (maybe, I don’t really know but I can assume). Should be interesting to see how that plays out. Apparently from what I’ve been reading is the chain is free to expand again – not the first time a chain sells out and makes a come back. At one time I had thought Kerasotes would become another national player, who knows, they might come back in a big way in newer markets, it’s certainly interesting that they have a heavy concentration in some areas (the midwest) and a few one-offs (NJ being a new region for them, their nearest location is probably Ohio).
Chicago has always been an one player town for the last century, Balaban & Katz, ABC Great States, Plitt, Cineplex Odeon, Loews Cineplex and now AMC.
That was my first thought when I heard about this. What’s going to happen in Chicago. Especially with the Webster Place 11 and the City North 14.
Regal Entertainment — meet Chicago. Chicago, meet Regal Entertainment. Although I bet Cinemark has an interest in strengthening their presence in Chicago…
Scott, you may be right, but a lot of theatre chains don’t want to operate in the city of Chicago due to excessive high taxes.
I’m thinking Scott might be right with Cinemark, then again Rave is randomly all over the country – why not Chicago. Maybe AMC will do another theater trade with somebody.
There is/was a Kerasotes plex scheduled to open in the Spring near me. The idea of AMC running it makes me cringe.
I’m sure the sale will go through. AMC will have to sell or trade a few theatres but many. They will most likely have to get rid of 1 or 2 in the Chicago area with everything they got from General Cinema and Loews.
In Indianapolis the only one I see being a problem is the one in Greenwood which is on the south side. There is only one other first run now which is the GC Greenwood Park 14 now AMC and the Loews is closed. There is a Cineplex which is second run.
Most of the other Kerasotes are in small towns and mid size towns which they have no compitation or very little. They could have a problem with the Inner Grove Heights because AMC has Arbor Lakes 16 and Eden Prairie Mall 18 and Southdale is far enough away is shouldn’t be a problem. Roseville is also far enough away from Coon Rapids that shouldn’t be a problem either.