Boxoffice-Febuary.1998

44 Boxomce
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EXHIBITION
BRIEFINGS
SILVER CINEMAS ACQUIRES
LANDMARK THEATRE GROUP
Dallas, Texas-based Silver Cinemas International
has agreed to purchase the Landmark
Theatre Group, headquartered in Los Angeles,
from Metromedia International Croup for
about $65 million.
Silver Cinemas was founded in June 1996
by former Cinemark USA executives Steve
Holmes and Tom Owens and by Brentwood
Associates, a private equity investment firm
located in Los Angeles. Landmark is the largest
exhibitor of specialty films—art films, foreign
pictures and independent releases— in
the LI.S. with 140 screens at 49 theatres nationwide.
This is Silver's eighth acquisition and marks
its entry into the independent film exhibition
business. Several of Landmark's senior executives
are expected to join Silver's management
team when the sale is complete.
PAGERS GIVE PARENTS
PEACE OF MIND AT GCC MOVIES
General Cinema's new South Bay 1 6 theatre
in Redondo Beach, Calif., has set up a
babysitter paging system to help parents relax
when they're at the movies alone. Parents can
request a pager when they arrive at the
boxoffice and then call their babysitter with
the number. If a call comes through, they will
be paged at their seats. It's a vibrating pager,
so other viewers won't be disturbed.
Another unusual feature at this 16-plex is
the 96-foot-long, three-tiered concession
stand. Food is prepared at the back of the
stand and then displayed on a "pass-through"
counter where items are easily accessible to
servers thus expediting food delivery to the
customer. "I can attest, even yesterday, when
we had a free showing, that we did not have
any lines, absolutely zero. People moved right
through," Tony Garrisi, director of operations
at General Cinema Theatres, told BOXOFFICE.
The theatre also offers an automated ticketing
system. Moviegoers can purchase tickets
up to two weeks before a show by i nserting
their credit card into an ATM at the theatre
and following directions on the touch screen.
UNION PICKETS REGAL CINEMAS
The International Alliance of Theatrical
Stage Employes, Moving Picture Technicians,
Artists and Allied Crafts of the United States
and Canada (lATSE) has accused Regal Cinemas
of "union busting" and launched a nationwide
boycott of the circuit. Reverend
Jesse Jackson has pledged his support and that
of the Rainbow/PUSH Coalition, vowing "not
to let Regal rest, until they treat the workers
right."
lATSE charges Regal with "systematically
terminating" members working as projectionists
In Fort Wayne, Ind., Akron, Ohio, and Richmond,
Va., and making members in Youngs-
Q&A BUYOUTMANN
BUYS CINAMERICA
Jeffrey
G. Lewine and Warburg, Pincus Ventures LP., partners in WestStar Holdings Inc.,
have bought Cinamerica LP from Viacom Inc. and Time Warner. For $165 million,
WestStar acquired 62 Mann and Festival theatres (374 screens) primarily in Colorado
and California. L ewine knows theatres from top to bottom . He started working for New York's
Cinema 5 when he was 14 years old as an usher, ticket taker and janitor. Eleven years later,
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in 1980, he had risen to become the company's COO. In
1 987, Lewine and his partners, the Edgar Bronfman family,
bought all 53 Cinemette theatres for $23 million and
re-named the chain Cinema World. Lewine became circuit
president and CEO, and built or expanded 1 1 theatres and
spent $12 million on renovations. In 1994, he sold Cinema
World to Columbus, Ca.'s Carmike Cinemas for $38.1
million. Lewine tells BOXOFFICE his plans for Cinamerica.
BOXOFFICE: What role will you play at Cinamerica?
JEFFREY LEWINE: I'll be the president and CEO.
BOXOFFICE: Will the circuit change names?
LEWINE: No. It will do business as Mann Theatres and as
FAMILY MANN: Lewine is very Festival Theatres in northern California.
protective of both his babies. BOXOFFICE: What changes do you foresee at Cinamerica?
LEWINE: I see a more aggressive building campaign and a
more aggressive acquisition campaign, both designed to shore up our market share in the
markets [we've entered] by buying these theatres.
BOXOFFICE: Are you planning to purchase any other theatre circuits?
LEWINE: We hope so—as soon as something is screaming to be done.
BOXOFFICE: What is the company objective of WestStar Holdings?
LEWINE: It was formed primarily for the acquisition of virtually ail of the movie assets of
Cinamerica LP and will be a vehicle for more acquisitions in the future.
BOXOFFICE: Do you see a lot of consolidation in the industry's future?
LEWINE: This is definitely an industry with a changing landscape that will ultimately go
through a consolidation; I see three, four or five very, very big circuits.
BOXOFFICE: Would you like to name any?
LEWINE: I'm not that smart. For our part, we see a consolidation play coming on the West Coast.
BOXOFFICE: What do you think is the driving force behind the consolidation?
LEWINE: Increased liquidity from different sources of funding. A more businesslike approach
being taken to the business. Wall Street and other financing sources discovering us as not only
a cyclical business but a business to be in 12 months a year. And the availability of top
management teams that are out there now.
BOXOFFICE: What do you plan to do with Cinamerica?
LEWINE: We will definitely be investing money into it. And I definitely intend to make money
with the assets that I'm buying. I'm not buying the company just to rebuild it all. But we intend
to spend a considerable amount of money fixing up and modernizing our theatres. We intend
to defend each and every situation that we have.
BOXOFFICE: Will this move affect the addition of the 1 4 screens to Mann's Chinese Theatre?
LEWINE: It's tooearly to tell. Something will happen at the Chinese Theatre. Whether it's 10
screens or 14 screens is up in the air, but we intend to play our part in the redevelopment of
Hollywood. Lisa Osborne
town, Ohio choose between a "deplorable severance
package" and a "drastic wage reduction."
Although an agreement was reached between
Regal and the local union in Cleveland,
it had a "horrendous cost," according to lATSE.
"In order to preserve a few jobs, the local was
forced to accept an exorbitant pay cut, along
with a drastic reduction of work hours."
Regal said that comments made by the union
were "factually inaccurate," adding that, "The
agency charged with establishing federal labor
policy has reviewed the allegations raised by
lATSE and found them to be lacking any merit"
This conflict has arisen because advances in
projector technology now allow one manager
to run 1 6 screens at the same time.
ON THE MOVE
William B. Doeren has been appointed
president and CEO of General Cinema Theatres,
Inc. He replaces Paul R. Del Rossi who
becomes the company's first chairman.
Doeren, who previously served as executive
vice president and COO, will manage the
circuit's domestic operations, while Del Rossi
directs its international expansion efforts and
certain strategic partnerships. ..CinemaStar
Luxury Theatres Inc. has appointed Norman
Dowling to the newly created post of vice
president and chief financial officer. Dowling
comes to CinemaStar from Advanced Marketing
Services Inc. of San Diego where he was
director of finance. ..Clearview Cinema
Group Inc. has elected Philip M. Getter as a
director. Getter is managing director of corporate
finance at Prime Charter Ltd., a New
York investment banking firm. ..Barry Ferrell,
QSC Audio's cinema market manager, has
been elected to the International Theatre
Equipment Association board of directors...John
Stanney has been appointed president
of Super Vision International. He
retains his position as chief financial officer.