AMC is among the chains hoping to reopen soon.
Photo: mario anzuoni/ReutersMajor U.S. movie-theater chains are suing the governor of New Jersey over the state’s plans to allow some public spaces—such as churches and shopping malls—to reopen while continuing to bar cinemas from resuming operations.
The National Association of Theatre Owners, which filed the lawsuit Monday on behalf of its members, alleges New Jersey’s current reopening plan unfairly shuts out theaters and violates its members’ First Amendment rights. New Jersey has been rolling out a phased reopening plan in recent weeks, allowing some indoor businesses to resume as of July 2, including museums, bowling alleys and casinos.
Movie theaters are included in the third stage of the state’s reopening plans, but officials haven’t said when that phase will begin.
AMC Entertainment Holdings Inc., Cineworld Group PLC’s Regal Entertainment Group and Cinemark Holdings Inc., the nation’s three largest theater chains, were included in the lawsuit, which names Gov. Phil Murphy as a defendant. The three chains hope to have most auditoriums up and running by the end of this month.
“The government-mandated total closure of movie theaters is neither fair nor reasonable,” the lawsuit said.
The lawsuit is the latest complication in the exhibition industry’s monthslong effort to get back to business since theaters closed in mid-March. Still grappling with fallout created by the coronavirus pandemic, states across the U.S. have been reopening sections of their beleaguered economies, including public commercial spaces such as restaurants and retail stores. But movie theaters have largely stayed shut, because of the special challenges faced by an industry that convenes large numbers of people in an indoor auditorium, a business model at odds with social-distancing measures enforced to curb the spread of the virus.
The complaint also zeroes in on Mr. Murphy’s move to allow churches to host in-person services at limited capacity. In its most recent proposal, New Jersey has said churches could reopen on a limited basis, allowing no more than 100 people or 25% of room capacity.
That is particularly unfair to theaters, the association claims, because some exhibitors lend out their auditoriums to church groups that could theoretically meet under New Jersey guidelines.
“A movie theater could host religious services on Sunday morning but would have to close showing movies on Sunday afternoon to an audience of the same size in the same auditorium following the same distancing requirements,” the suit says.
The association filed its lawsuit in New Jersey because it believes the state has been slow to issue concrete plans for reopening theaters and hasn’t responded to plans proposed by the group, according to a person familiar with the matter.
A spokesperson for the New Jersey governor’s office didn’t immediately respond to a request for comment.
AMC, Regal and Cinemark have had, more than once, to adjust their proposed plans for reopening theaters. Theater owners and studios alike have kept a particularly close eye on the reopening plans for key box-office markets such as Los Angeles, San Francisco and the Tri-State Area, which includes New Jersey.
A recent resurgence of new-coronavirus infections has stymied plans to reopen the economy, especially in populous states such as California and Texas, and movie theaters have also been at the mercy of Hollywood studios.
The two major releases expected to breathe life into the theater industry have both been delayed more than once. AT&T Inc.’s Warner Bros. had hoped to release its science-fiction thriller “Tenet” in mid-July, then late July, before finally delaying the release to Aug. 12. Walt Disney Co. has followed suit, twice pushing back the release of its live-action remake of “Mulan,” which is now slated to open on Aug. 21. The movie, which cost $200 million to produce, was originally set to make its debut in theaters in March.
If dealing with months without revenue wasn’t enough, AMC also came under fire recently after Chief Executive Adam Aron said that, while hoping to avoid getting pulled into a political debate about wearing masks, the company wouldn’t require moviegoers to use them. Amid criticism, AMC quickly reversed its plans and said it would require people to wear masks when its theaters reopen. That is currently scheduled for July 30.
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