AMC Entertainment buys out Kerasotes Showplace Theatres

The nation’s second largest theater circuit, AMC Entertainment, announced last month that it had reached an agreement to acquire 93 of the 96 movie theaters operated by Kerasotes Showplace Theatres.

The agreement, which includes Showplace East 11 and Showplace West 12 in Bloomington, is not yet official, as an antitrust approval from the U.S. Department of Justice is still in the works.

Based in Chicago, privately held Kerasotes is the nation’s sixth largest motion picture exhibition company, the largest in the Midwest.

Some moviegoers are worried the merger will yield both higher ticket prices and more expensive concessions because Kerasotes’ Five Buck Club, which reduces tickets to $5 after a movie has run for two or more weeks, might not be offered any longer.

Brittany Avery, a Bloomington resident, said the Five Buck Club is crucial to Kerasotes’ success.

“With the economy the way it is now, I think business will decrease,” Avery said. “People don’t want to spend $9.75 or more on a movie.”

Deals at movie theaters are rare. AMC offers one free refill on large popcorn and soft drinks, and they offer a “concession saver” deal, where guests can
purchase a $4 coupon worth $5 of concessions.

While AMC does not offer the Five Buck Club, it does offer a frequent moviegoer program, called AMC MovieWatcher, which allows patrons to earn points redeemable for free movies and concessions every time they purchase a ticket.

According to the company’s Web site, all Kerasotes gift cards, movie money, premiere tickets and super saver tickets will still be valid after the sale, though complimentary passes and readmit tickets might not be.

Tere Miller, vice president of corporate communications for Realty Income Corporation, the company that owns the property of Showplace West 12, said the merger of AMC would be beneficial for the company.  

“We purchased a number of key properties over the years, and they were a good operator, but they are a regional chain,” Miller said. “AMC is a much larger chain, so from a credit profile point of view it will be much better for us.”

Kelly Brown, spokeswoman for the Bloomington Chamber of Commerce, said the sale of Kerasotes to AMC will allow for an increase of movie offerings, but will not find that “personal touch offered in smaller regional companies like Kerasotes.”

But for those like junior Kevin Seng, the takeover of AMC does not make a big difference. For him, movies are not only too expensive but also time consuming.
“I love watching DVDs,” Seng said. “I’m a college student and I don’t have that time and money to spend.”