"We are currently in negotiations with three other operators and expect to announce a new operator shortly," Snyder said in his statement, noting that the project continues on schedule for a February opening.

At The River, Snyder's new retail/entertainment complex in the upscale Inland Empire community of Rancho Mirage, a lease agreement was signed with Resort Theatres Inc., replacing Edwards, he says.

Jack Kyser, chief economist of the nonprofit Los Angeles Economic Development Corp., tells GlobeSt.com that he wasn't surprised by the bankruptcy filing. "Everybody had to have theaters with all the bells and whistles, like stadium seating and the latest sound systems, so they ended up obsoleting their older theaters," Kyser says.

Last year alone saw the addition of more than 3,000 screens to the nation's market, bringing the total to 37,185 screens, according to the North Hollywood-based National Association of Theatre Owners. Stephen Coffey, president of Edwards, the nation's 11th largest chain, estimates there's only enough demand for 25,000 to 30,000 screens.

Coffey adds that theater operations at Edwards will continue unchanged. The family-owned chain ended 1999 with a net loss of $40 million on revenue of $299 million, according to the filing.

The bankruptcy filing by Edwards comes two weeks after Columbus, GA-based Carmike Cinemas Inc., with 2,750 screens, took similar action. Carmike is one of the nation's largest chains, ranking third behind Regal Cinemas Inc. and Loews Cineplex Entertainment Corp.