Two popular Los Angeles movie theaters are under new management after AMC Entertainment announced Monday that it will assume the lease of The Grove in West Hollywood and The Americana at Brand in Glendale.
News that AMC, the world’s largest exhibition chain, was in negotiations to take over the venues broke in June and came after its operator, the Pacific Theatres chain, was shut down permanently in April. The Decurion Corp., the owner of the chain, also shuttered the ArcLight Cinemas and is facing lawsuits alleging that the company breached its lease obligations to pay rent.
This week, AMC said it has reached an agreement with Caruso, a privately owned real estate company to take over the leases at the two Los Angeles area locations. The Grove Theatre is a 14-screen venue, while The Americana is an 18-screen theatre. AMC is expected to reopen the theaters in August.
The theaters have been closed for more than a year due to the COVID-19 pandemic. In a release announcing the deal, AMC notes that in 2018, The Grove Theatre was the second highest-grossing movie theatre and The Americana at Brand Theatre was the fifth highest-grossing movie theatre in the Los Angeles area.
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AMC said it is in active discussions with other property owners regarding additional, currently closed locations. The theater chain struggled during the pandemic, but it has reemerged with its debt renegotiated and with its stock sizzling, the latter due to a social-media fueled run that has little to do with its business fundamentals.
“AMC is proud to be expanding in the movie-making capital of the world. And we are eager to get started as soon as possible, showcasing for our guests at these two theatres the exciting lineup of movies scheduled throughout the rest of 2021,” said AMC CEO Adam Aron in a statement.