On a typical weekend in Brown County, residents flock to Hollywood Theaters to watch the newest flick on a jumbo screen in tow with their favorite snacks and soda. A tradition that will come to an end soon — sort of.
On February 19, Regal Entertainment Group (REG) announced they had bought Hollywood Theaters from chairman and CEO Scott Wallace, the founder of Wallace Theater Corp., who acquired the Hollywood Theater chain in 1999.
REG bought the chain for $191 million dollars plus assuming approximately $47 million of assumed lease obligations, comprised of capital leases and financing obligations, and certain working capital. The cash portion of the deal includes repayment of approximately $157 million of the sellers’ debt and is subject to customary post-closing adjustments, said REG’s press release.
So what will that mean for our own local Hollywood Theater when Regal fully acquires the theaters in the next three months?
Russ Nunley of Regal Cinemas said that the goal is to make the transition as seamless as possible. Customers will receive the same great treatment as always and the customer won’t notice too much of a difference.
Nunley said that the reason for the acquisition was that Regal could see what a valuable asset Hollywood Theaters had been to the community and the great communities they were serving.
Most of the changes will be behind the scenes, but Regal Cinemas is adding an extra incentive to encourage local movie goers to get out and see their new favorite films, the Regal Crown Club, which currently has over 7 million members and our local community will now have this opportunity at the local theater.
The Regal Crown Club issues a card that is used every time movie lovers visit the theater. The more the card is used the more rewards are earned, items such as free popcorn, soft drinks, etc., are included in these rewards.
“We expect people in Brownwood and Early will really enjoy the program as well,” said Nunley.
REG operates 6,880 screens in 540 locations, making it the largest in the U.S. exhibition circuit. The acquirement of Hollywood Theaters added 43 theaters with 513 screens in 16 U.S. states and three U.S. territories into the REG fold.