The Budget Cinemas North had become unprofitable, said Mike Mullen, senior vice president of operations for Silver. Discount theaters in general have suffered amid what has become an intensely competitive industry in recent years, he said. Attendance has declined at discount theaters generally, Mullen said, and more so at the Budget Cinemas North. Mullen said Silver currently intends to keep the Oriental and Downer open. They're operating just fine.
Silver is one of several theater chains struggling in what analysts view as an overbuilt market.
Bankruptcies, slumping stock prices and debt problems litter the industry. Industry giants United Artists, Regal Cinemas and Loews Cineplex Entertainment, meanwhile, also are suffering to varying degrees. Meanwhile, Milwaukee-based Marcus, which operates 487 screens in Wisconsin, Ohio, Illinois and Minnesota, has largely avoided the damage. That's partly due to a relatively conservative approach to debt. Also, unlike many exhibitors, Marcus owns much of its theaters' real estate, so it isn't locked in to long-term leases at unprofitable locations and has flexibility at a time of industry change.