CMX Cinemas filed for chapter 11 protection on Saturday, citing the ongoing coronavirus as the catalyst for its filing, the South Florida Business Journal reported. The announcement comes after the company announced early in March that it would acquire Houston-based Star Cinema Grill as part of its ongoing expansion plans. All CMX locations were forced to close to movie goers due to social distancing restrictions, and the chain has been unable to renegotiate contracts with its creditors, including landlords, and movie studios, according to a statement issued by the company. The company said that 30 percent of its monthly revenues go to lease-related expenses, while 60 percent of ticket sale revenue goes to movie studios. The statement said CMX will attempt to strike new agreements to pay no more than 40 percent of ticket sales revenue to studios. It is also seeking deals with mall landlords that would make its rent structure similar to that of department stores that serve as anchors, the statement said. CMX is unsure when it may be able to reopen to movie goers, and whether its sales will return to normal once stay-at-home orders are lifted, the statement said.
