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The family's Missouri-based company closed its
50 B&B Theatres locations in seven states this week and imposed
its first layoffs ever, 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 outbreak has put the biggest strain on
movie theaters in the industry's 115-year history. Most theaters
in the United States, and many around the world, are closed to
help prevent the novel coronavirus 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 reopen at all if the shutdown lingers for months. The
theater business already was facing competition from streaming
services such as Netflix Inc.
Website Deadline Hollywood estimated that U.S. and Canadian box
offices could lose $2 billion if theaters remained closed until
the end of May, though it noted that some industry sources
believe that could be recouped later in the year.
To help theaters stay solvent, the National Association of
Theatre Owners on Wednesday urged the U.S. Congress and the
Trump administration to provide tax benefits and other emergency
relief.
The industry employs more than 150,000 people in the United
States, the group said, from ticket sellers to projectionists,
concessions workers and cleaning crews.
Theater owners took pride in staying open during previous crises
including World War II and after the Sept. 11, 2001 attacks and
offering a respite from the world's troubles. Plus, the movie
business 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 Brittanie Bagby, who serves as 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.
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 help get
through the coronavirus crisis.
"If this goes six months, I don't know if I can make it six
months without any business," O'Meara said. "I'm hoping for a
two- to three-month turnaround."
BIG CINEMA GROUPS STRUGGLE TOO
Even the largest theater chains are under pressure.
Cineworld Group Plc, which operates 9,500 theaters worldwide
including 7,000 in the United States, said the worst-case
scenario would be closing theaters for up to three months. If
that happened, the company said it could be unable to make its
debt payments.
When theaters do re-open, they face costs such as replacing
expired food, candy and soda. One B&B location had just received
a $3,000 food shipment that was given to employees because it
would have gone bad during the closure.
Beyond that challenge, it is unclear when theaters will have
fresh movies to show.
Hollywood studios have postponed many films that were set to
debut in the coming weeks, including Walt Disney Co's epic
adventure "Mulan" and Marvel movie "Black Widow," which had been
slated to kick off the lucrative summer blockbuster season on
May 1. Release dates for those films are now unknown.
Moviegoers also may be reluctant to return to crowds even when
authorities say it is safe.
Operators said they were trying to provide financial help to
employees during the closures, and the theater association
announced a $1 million fund to assist displaced workers.
Many in the industry are hopeful 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 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."
In the meantime, the Bagby family has appealed to lawmakers to
help keep theaters afloat, noting that the local movie house is
a primary source of entertainment in many small towns and a
bedrock of American culture.
"Our slogan is 'bringing Hollywood to your hometown,'" Bobbie
Bagby said. "Long term, I really hope we can get back open in
those communities. It's one of the ways we will get people's
hopes back up."
(Reporting by Lisa Richwine; editing by Bill Tarrant and Cynthia
Osterman)
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