Managing in Troubled Times Case Study

Regal Entertainment Group: Managing Troubled Times

Abstract:
In the 1990s, the movie chains in the US had spent billions on the construction of megaplexes. While the costs per screen rose fourfold, the audiences in the theatres did not increase proportionately. In the early 2000, most of the movie theatres were uneconomical and were on the verge of bankruptcy. Taking advantage of the situation, Denver-based billionaire Philip Anschutz acquired the three struggling theatre chains - United Artists Theatres, Regal Cinemas, and Edwards Cinemas at a very low price. He combined the assets of the three companies to form a single entity - Regal Entertainment Group.

Pedagogical Objectives:

• To discuss the strategies taken up by Philip Anschutz to refurbish a chain of bankrupt theatre chains into the largest theatre chain in the US.

Keywords : Regal Entertainment Group; United Artists Theatres; Regal Cinemas; Edwards Cinemas; Philip Anschutz; Managing in Troubled Times Case Study; Bankrupt movie chains; Movie chains; Oaktree Capital Management; Digital projection; Regal Cinemedia; Kurt Hall; Michael Campbell; Live concerts; Dividends; Theatre chains