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Financing issues abort Muvico’s multiplex in Chicago’s Block 37
posted by
CSWalczak
on
November 4, 2009 at 9:50 am
CHICAGO, IL — It looks like the cinema that was to be operated by Muvico in the Block 37 complex (now referred to as 108 North State – opposite Marshall Field’s, oops, Macy’s) is not going to be constructed. Muvico sought to renegotiate lease terms in June, but the bank involved would not agree to them and is foreclosing on the developer of the retail and transit portion of the project.
After undergoing a corporate reorganization that included shedding several of its movie houses, Muvico “informed Freed that it could not honor its lease but offered to enter into alternative arrangements,” Freed said in the filing.
Muvico renegotiated the lease, but the banks refused to approve the new terms, the filing said.
Read more in the Chicago Tribune.
Comments (7)
Very interesting article…what typically will happen???
Does Muvico then sell it’s lease option to another theater chain?
And if another theater chain does not want it, what then???
I could see a similar situation now that National Amusments has dropped out of several planned sites.
The theater may go vacant. Times are tough out there. A lot of chains are either on hold or dumping properties right now. Obviously, the bank didn’t like the terms of the renegotiated lease, and the bank is trying to foreclose on the entire property. So the whole mall is in trouble and may not open.
Here’s a follow-up story from November 3; at the end of the article the writer indicates that the developer is trying to work with a new company called Paragon Entertainment on an effort relaunch the theater project: View link
I was wondering if another company would move in. Because if the buiding has been constructed and the mall opening soon, wouldn’t the theatre space have been already built as a movie theatre? That is why when I heard that Muvico was pulling out I figured they would have to look for another company or else they would have to re-construct what is already there.
Furthermore about Paragon, founded by three former Muvico execs:
View link
This link will probably have a short shelf life…
Another story that throws some light on how Paragon came to be. Perhaps if they can resolve all the financing issues, the theater might happen after all.
View link
Here’s another related story; according to the information here, the theater will open under Paragon management but under the Muvico name in 2010:
View link
But given the history of the whole Block 37 project, the current financial snarl, and the economy in general, I am more than a tad skeptical.