America's small theatres fear virus could spell their doom

The Nitehawk cinema in Brooklyn, New York, has closed due to the coronavirus pandemic.
PHOTO: REUTERS

LOS ANGELES • Members of the Bagby family have operated movie theatres in small American towns for four generations.

With the coronavirus outbreak forcing their 400 screens to go dark indefinitely, some of them worry that run could come to an end.

The family's Missouri-based company closed its 50 B&B Theatres locations in seven states last week and imposed its first layoffs, affecting 1,980 workers.

"We've been around since 1924," B&B chief executive Bob Bagby said in an interview. "We hope we can continue to be around, but we're a little scared right now."

The global coronavirus pandemic has put the biggest strain on movie theatres in the industry's 115-year history. Most theatres in the United States - and many around the world - have closed to prevent the virus from spreading.

Operators are unsure when they will be able to switch on the marquee lights again. Some voiced concern that they might not be able to re-open at all if the shutdown lingers for months.

The theatre business was already facing competition from streaming services such as Netflix.

Entertainment website Deadline Hollywood estimated US and Canadian box offices could lose US$2 billion (S$2.9 billion) if theatres remained closed until the end of May, though it noted some industry sources believe that figure could be recouped later in the year.

To help theatres stay solvent, the National Association of Theatre Owners urged the US Congress and President Donald Trump's administration to provide tax benefits and other emergency relief.

The group said the industry employs more than 150,000 people in the US, from ticket sellers to projectionists, concession workers and cleaning crews.

Theatre owners took pride in staying open during previous crises, including World War II and after the attacks on Sept 11, 2001, offering a respite from the world's troubles.

Plus, the movie business had typically remained healthy during economic downturns when people sought a relatively inexpensive form of entertainment.

"This is the first time we've ever had to face mass layoffs in our industry," said Ms Brittanie Bagby, who is executive vice-president at B&B Theatres alongside her sister Bobbie and brother Brock. "Our hearts are breaking."

While no movie tickets or concessions are being sold, operators still have bills to pay for rent, mortgages, utilities and other costs.

Mr Mark O'Meara, owner of University Mall Theatres and Cinema Arts Theatres in Fairfax, Virginia, said he would try to negotiate new terms for rent payments with his landlord to get through the coronavirus crisis.

"If this goes (on for) six months, I don't know if I can make it six months without any business," he said. "I'm hoping for a two-to three-month turnaround."

Even the largest theatre chains are under pressure.

Cineworld Group - which operates 9,500 theatres worldwide, including 7,000 in the US - said the worst-case scenario would be closing theatres for up to three months. If that happens, the company said, it could be unable to make its debt payments.

When theatres do re-open, they face costs such as replacing expired food, candy and soda.

One B&B location had just received a US$3,000 food shipment that was given to employees because it would have gone bad during the closure.

Operators said they were trying to provide financial help to employees during the closures. The theatre association also announced a US$1 million fund to assist displaced workers.

Many in the industry hope moviegoing will see a resurgence after restrictions are lifted and people who have been staying home return to everyday activities.

"I'm very confident the industry will bounce back," said Mr Aaron Donaldson, who, with his wife, owns the single-screen Lake Theatre in Clear Lake, Iowa.

"Once we are allowed to go back out there, I hope people are going to really enjoy being out and they'll go to the movies more."

REUTERS

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on March 24, 2020, with the headline America's small theatres fear virus could spell their doom. Subscribe