New capital investment comes as parent company Cineworld weighs potential sale of U.K. locations
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Regal Cinemas completed a $250 million capital raise on Tuesday, which the theater chain says it will use to make upgrades to its existing theaters in the United States.
The company plans to use the new funds to add luxury recliners to more multiplexes and to upgrade the Regal website and ticketing app.
“With the strong support from our existing investors and real estate partners, Regal is well positioned to invest in growth opportunities with highly accretive investments including brand-new luxury recliners in the United States and digital enhancements for our loyal customers,” said CFO Thomas Song. “As we identify theatres for these improvements, we encourage our landlords to also reach out with interest for their respective locations.
The new investment comes as Regal’s parent company, Cineworld, is considering selling or restructuring its UK business, having reportedly contacted potential bidders and enlisting bankruptcy consulting firm AlixPartners to assist with a potential sale. The status of that bidding process is currently unknown.
The investment also comes as exhibitors are anticipating more consistent box office grosses in the latter half of 2024 and in 2025, as the industry has largely gotten through the strike-related release delays that contributed to poor ticket sales in the first half of 2024. With films like “Inside Out 2,” “Despicable Me 4” and “A Quiet Place: Day One” finding midsummer success, theaters expect another huge boost from Marvel Studios’ “Deadpool & Wolverine” at the end of July.
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