Los Angeles-based Metropolitan Theatres Corporation's subsidiaries operate 16 theaters across Utah, Colorado and California.
After filing for bankruptcy Feb. 29 in California, the company may end some of those leases, which include Park City’s Redstone and Holiday Village theaters.
Chapter 11 bankruptcy means some theaters may survive if Metropolitan Theatres renegotiates with its landlords and creditors. Other theaters may close.
Prior to filing, the company closed “underperforming” theaters in Aspen, Colo., and Hailey, Idaho, according to President David Corwin.
Corwin said the COVID-19 pandemic significantly hurt Metropolitan Theatres’ financial position, in a declaration filed with the U.S. Bankruptcy Court for the Central District of California.
He also cited the Screen Actors Guild-American Federation of Television and Radio Artists and Writers Guild of America strikes. Corwin said domestic box office sales are projected to drop 11% this year compared to 2023 because fewer movies will be released.
Metropolitan Theatres is on the hook for $2.6 million in rent payments annually, and Corwin said it owes over $313,000 in unpaid rent right now.
The company also owes over $2.1 million to an affiliate called ATP, which took on some of Metropolitan Theatres’ debt in 2021 and loaned the company more money in 2023.