Cineplex Inc., (TSX:CGX) Canada’s largest movie theatre chain, has announced that it will keep its doors closed nationwide for the foreseeable future due to the ongoing coronavirus outbreak.
After initially setting an April 2 timeline to consider re-opening 165 theatres across Canada, Cineplex announced that it will instead turn to government and public health authorities for any further guidance on when it’s safe to reopen.
The decision comes as provinces enact their own mandatory closures of non-essential businesses. Cineplex represents 75% of the Canadian film exhibitor market across the country.
Cineplex is also dealing with other factors out of its control, including a dearth of potential blockbusters from Hollywood studios into the late summer and a lingering takeover by Cineworld PLC.
Major films have been pulled from the summer movie season. Among the changes, Sony has moved “Ghostbusters: Afterlife” to next March while Disney pulled Marvel film “Black Widow” from the schedule without setting a new release date.
Cineplex is also in the midst of a $2.8-billion acquisition by Cineworld PLC, which is still subject to various conditions, including federal government approval under the Investment Canada Act.
Cineplex shares closed Wednesday up 21 cents, or 1.8%, to $11.91.