The two megaplexes, the Aliso Viejo Stadium 20, in Aliso Viejo, CA and one of the two properties run by the company in Boise, ID were purchased by EPT in a sale/leaseback transaction with Edwards in 1998. Both theaters are consistently ranked among the top 100 high box office grossing properties in the nation.
Founded and based in Orange County, Edwards owns 70 theaters in Southern California, Idaho and Houston, TX with a total of 736 screens. Much like a personal bankruptcy proceeding under Chapter 7 that allows a debtor to reaffirm or reject any of his debts, Chapter 11 allows a company to choose to reject or assume any of its leases.
"At the time the company filed for Chapter 11, it rejected 28 theater leases," says spokesperson Ann Julsen with Sitrick and Co. "The company is continuing to evaluate all of its real estate holdings. There were some properties that were under development at the time of the bankruptcy that they are going ahead with, and some they are not."
Even before the bankruptcy was filed, Edwards had already closed some theater locations. At the time of the bankruptcy the chain closed four theater complexes in Rancho Cucamonga, Temecula, Stanton and San Diego. In all, Edwards closed 23 theater properties last year.
"Public demand for all state-of-the-art stadium megaplexes and lack of attendance at the older non-stadium theaters has placed tremendous financial pressure on existing theater chains. By availing ourselves of the Chapter 11 process, we expect to be able to reduce the company's operating expenses and make necessary improvements to the business, thereby creating a strong competitive future for Edwards Theaters," said Stephen Coffey, president of Edwards at the time of the bankruptcy filing.
Edwards currently owns 33 theaters throughout Orange County, running 235 screens among them. EPT is a Kansas City, MO-based real estate investment trust that specializes in acquiring and developing a diversified portfolio of high-quality properties leased to major entertainment-related business operators, like AMC Entertainment, Edwards, Loews Cineplex Entertainment, Muvico Entertainment and Consolidated Theatres.
Publicly traded on the New York Stock Exchange since November 1997, EPT stock closed Thursday at $13.25 a share, up 9.84% for the day on volume of 74,900 shares.
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