The U.S. movie theater industry has taken a big blow from the COVID-19 pandemic as U.S. movie theater chain CMX Cinemas has filed for Chapter 11 bankruptcy a second time, five years after its first filing.
The company, based in Miami, with assets between $100,001 and $500,000, has faced mounting challenges in addition to pandemic-related closures. This is yet another bankruptcy that underscores the profound and ongoing challenge of movie theaters adapting to a changing market.
The fallout is expected to affect real estate holding, employees and the entertainment industry as a whole, and is a grim indicator that the traditional theater business model is under severe threat.
A Troubled Industry Landscape
The movie theater industry was already facing challenges before the pandemic because of the rise of streaming and better home entertainment options. Affordable big-screen TVs narrowed the experience gap, and surging ticket and concession prices discouraged visits.
According to Deadline, box office revenue is down 11% year-over-year in early 2025, with only 25% of moviegoers going to the movies on a regular basis, as opposed to 40% pre-pandemic.
Media analyst Eric Handler told the Los Angeles Times, “The industry’s got clean air for the first time in years,” but with consumer caution and plenty of other entertainment to turn to, theaters face an uphill battle to lure audiences back.
Real Estate Restructuring and Potential Closures
CMX’s largest asset is its real estate, and the company has engaged with A&G Real Estate Partners to evaluate its property portfolio. This indicates that it could make sales or close some or all of its 28 locations.
Though theaters continue to operate for now, closing venues might help open up valuable urban real estate for development.
This kind of change would effect local economies and urban planning, as communities lose entertainment centers, and associated business traffic. The bankruptcy may send ripples through commercial real estate landscapes in the affected cities.
Broader Industry Instability and Debt Woes
CMX is not alone; other chains face similar financial distress. Regal Cinemas closed all 536 of its U.S. theaters and furloughed 40,000 employees in 2020. Its parent, Cineworld, filed for bankruptcy in 2022 after accumulating nearly $5 billion in debt, seeking to renegotiate leases and secure loans.
These troubles reveal deeper systemic weaknesses in the theater industry, with debt burdens and declining revenues threatening survival.
CMX’s bankruptcy is part of a larger crisis, one that highlights an industry struggling to adapt to new consumer habits and financial realities.
Change in Film Distribution Strategies
Financial pressures have accelerated changes in how films are released. During the pandemic, studios released major titles on streaming platforms simultaneously with or shortly after they opened in theaters. For example, Warner Bros. premiured its 2021 slate on HBO Max the same day as theaters.
This viewer convenience devastated box office revenue and alarmed theater owners. And it was a wake-up call, media analyst Rich Greenfield said, that theaters have to provide a “IMAX-like” event experience to get people to leave their homes.
The traditional theatrical window is shrinking, forcing studios to balance box office and streaming strategies.
Declining Box Office Revenue
U.S. box office revenue peaked nearly $12 billion in 2018, but fell to $8.5 billion in 2024, with 2025 heading in the same direction. While blockbusters like Barbie still attracted crowds of moviegoers, they were not enough to offset declining attendance for other genres like romantic comedies and indie films.
This persistent drop reflects changing consumer preferences and complicates tudios’ decisions on theatrical releases.
The shrinking box office signals a long-term shift in how audiences engage with movies, challenging the financial sustainability of traditional theaters.
Impact on Employment and Local Economies
The theater industry’s financial struggles have led to massive job losses. Regal’s 2020 shutdown furloughed 40,000 U.S. workers, and Cineworld employs around 28,000 worldwide.
The job losses go beyond the theater employees to suppliers and local businesses that benefit from the theater’s traffic.
The National Association of Theatre Owners warned Congress, that without aid, 69% of small and midsize theaters could go out of business, and with them, 66% of theater jobs. This threatens not only workers, but also the economic health of communities that rely on theaters as cultural and commercial anchors.
Government Intervention and Industry Appeals
Industry groups have called on the government to provide financial assistance, urging Congress to provide CARES Act funds to theaters. They warned that without support, many theaters and jobs would disappear.
Some relief has arrived, such as Regal’s parent company securing a $450 million lifeline loan, but the bankruptcies continue. These challenges suggest existing aid may be insufficient, and ongoing policy discussions are needed to support the sector.
The survival of the theater industry may require additional government intervention to help them reach stability in the face of evolving market conditions.
Adapting to the New Reality
Consumers face a transformed moviegoing landscape. With fewer theaters today offering diverse titles, visits are best saved for major blackbusters or event screenings.
For other genres, waiting for home streaming — often already included in a subscription — is often more practical and affordable.
Some chains, like AMC, offer classic film re-releases to attract audiences seeking big-screen nostalgia. Understanding that home entertainment now rivals theaters encourages consumers to prioritize value and convenience, adapting their habits to the new reality of film consumption.
A Permanent Shift?
CMX’s bankruptcy and similar cases reflect a lasting shift in entertainment. Moviegoing has changed with shifts in technology, consumer habits and the pandemic.
Now, as AMC and others scramble for new financing and for ways to innovate, the industry must reconsider how to provide such immersive experiences that compel people to leave home.
While blockbuster events will draw a crowd, routine theater visits for a wide range of films are likely a thing of the past. The future points to a leaner, more specialized theater sector, adapting to changed cultural and economic landscape.