AMC Entertainment, Inc., the second largest movie theater chain in North America, has just shuttered a local movie house. Over the years, thousands of parents have dropped off their children at the front of the theater for a night at the movies
Jerseyville is a small rural town in Illinois that serves as the county seat. The decades old theater now owned by AMC that sits across the street from the vacant Moose Lodge is now closed as well. What makes the closing so sad is the fact that the theater was profitable, it just doesn't seem to fit the business model of the huge conglomerate that recently purchased it.
(Jerseyville, IL USA) Traffic passes the Stadium Theater the last night of operation by AMC Entertainment, Inc. The closing marks the end of a theater that had been in operation since 1949. |
At the time this is written, AMC has the theater listed for sale at $770,000. The facility was last sold for less than $73,000 several years ago. Many believe this is a tactic used by AMC to stifle competition. One regional theater operator said recently in a local newspaper interview that facilities AMC owns and abandons are usually set for sale at such high prices, no other theater operator is able to purchase them.
“If you look and see what they’re trying to sell it for, from my perspective, it is impossible to even consider any type of business plan that will work on $770,000. I couldn’t charge $20 a ticket and figure out how to pay that,” he said. “What I believe their goal is, is to let it sit on the market for a period of time. When they say ‘Well, we don’t have any serious buyers,’ then they’ll donate it to the city.” The man went on to say that once given to the city there will be a stipulation that the building cannot be used to show motion pictures.
As could be expected, an AMC representative said the company’s asking price for the Stadium Theatre is not an arbitrary number, as some have claimed. (Personally, I think it's calculated to minimize the ability of anyone to utilize the facility for its intended use as a theater and hinder competition.)
“When the sale of a theater or building becomes necessary, AMC works with a local broker to determine an appropriate asking price for the property, which is what we have done in Jerseyville,” he said.
The representative also said he is not aware of any stipulations attached to the sale of the Stadium Theatre at this time. He went on to say that if the price were reduced, stipulations preventing its use as a movie theater would not be added. He did, however, say those stipulations have been added in other instances.
I suppose a Frank Capra movie could be a fitting end to a local landmark if it can't be reopened. Seems such a shame to close it since it's profitable and especially more so to do it at Christmas.
Merry Christmas AMC. I hope you get a stocking full of old maids!
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