Cinemex Holdings USA, Inc. and Cinemex USA Real Estate Holdings, Inc. have filed for bankruptcy protection and reorganization under Chapter 11 of the US Bankruptcy Code in Miami, Florida, where it …
was recently embroiled in a case over its planned acquisition of the Star Cinema Grill chain, which consists of 11 Houston-area movie theaters, by CMX parent Cinemex Holdings USA Inc. for an undisclosed price. The deal would have made CMX the seventh-largest US theater chain.
“We did so as a result of the economic crisis precipitated by the coronavirus pandemic,” the statement said. “This filing will help ensure the long-term viability of our business, including our ability to protect our employees. CMX said the pandemic “has resulted in the total suspension of our business. We are not generating any revenues while having to pay high fixed costs. Even prior to filing for bankruptcy, we were spending over 30 percent of our revenues on lease-related expenses while studios ended up with 60 percent of every ticket sold.
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