The house owners of a South Florida shopping center have sued AMC Theatres after the nationwide theater chain instructed landlords that it might not be paying hire for April in an effort to manage prices throughout the coronavirus lockdown.
The go well with, filed in federal courtroom in Miami by Palm Springs Mile Associates, Ltd., seeks in extra of $7.5 million in damages. The lawsuit alleges that the theater on the owner’s grounds, AMC Hialeah 12, didn’t pay $52,153.87 in hire. It additionally says that the coronavirus pandemic doesn’t set off the power majeure clause of the lease, arguing that AMC has dedicated a breach of contract that requires the theater chain to instantly pay the steadiness of the multiplex’s lease.
“The Landlord recognizes the challenges posed by COVID-19, including on its own business,” the lawsuit states. “Under the express terms and provisions of the Lease and Guaranty, however, Defendant is obligated to pay Rent and that obligation is not excused.”
A rep for AMC Theatres didn’t instantly reply to a request for remark.
The lawsuit comes after Georgia Gov. Brian Kemp introduced that almost all companies, together with film theaters, could be allowed to reopen as early as subsequent week. Florida Gov. Ron DeSantis has additionally organized a process power to start a plan to reopen his state’s economic system, however it’s unlikely that many film theaters, together with AMC, will have the ability to reopen on a state-by-state foundation anytime quickly.
“Until the majority of markets in the U.S. are open, and major markets in particular, new wide release movies are unlikely to be available,” learn a press release launched by the National Association of Theater Owners on Wednesday. “As a result, some theaters in some areas that are authorized to open may be able economically to reopen with repertory product; however, many theaters will not be able to feasibly open.”
AMC, which has been closed for over a month and has furloughed all its company staff in an effort to stay solvent, introduced a $500 million bond providing final week that the corporate says would enable it to keep away from chapter via November. For now, the chain is planning to reopen its theaters in June in anticipation for some summer time blockbusters which can be nonetheless scheduled to be launched in July like Christopher Nolan’s “Tenet.”
Pamela Chelin contributed to this report.
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