Since last April's announcement of the Sony-Loews/Cineplex Odeon merger, Chicago moviegoers have been waiting for the ax to fall.
As a condition of the transformation into the Loews Cineplex behemoth, the U.S. Department of Justice required the sale of twenty-five theaters - fourteen in New York and eleven in Chicago. The list of local theaters on the block included most of Loews' downtown empire - 600 North Michigan, 900 North Michigan, Water Tower 1-4 and 5-7, the Biograph, Broadway, Bricktown, Burnham Plaza, Hyde Park, River Run and the Old Orchard Quad.
With the cream of the city crop on the line, speculation was rampant - as were concerns that new owners might kill off the new resurgence in downtown moviegoing with laissez-faire attitudes and B-grade booking. Last week Loews Cineplex finally announced the sale of eight theaters (both Water Towers, Biograph, Broadway, Bricktown, Burnham, Hyde Park and Old Orchard) to the Meridian Entertainment Group - a new, local, African-American owned chain. Meridian is a venture by Chicago businessman Donzell Starks, president and CEO of Inner City Entertainment. Starks and the St. Louis merchant bank Civic Ventures reportedly staked the deal - though no one is saying what the sale price is - and with thirty screens, Meridian now controls 20 percent of the Chicago market.
This is where the plot thickens. Inner City already owns thirty-four screens - the Lawndale, Chatham and 62nd and Western theaters - all of which are operated by Loews Cineplex. So is this more of a swap? No, says Alisa Starks, Meridian's executive vice president for marketing, and Donzell's wife.
"We still have a relationship with Loews, but Donzell and I have always planned to own and operate theaters," she says. "Right now the theaters are separate, but long term we will probably move to own and operate those under Meridian as well."
But wait, there's more. With three theaters still up for sale, including the jewel in the crown that is 600 North Michigan, Meridian may not be done. "Our main goal was to close," Starks says. "There were other issues outside of Loews Cineplex that prevented us from closing right away on 600 North Michigan." The final two theaters are still in the air, pending settlement of issues relating to 600. "This what we were willing to do until we could close 600," she says.
In the meantime, Meridian plans to make improvements to the theaters it now owns, working to "turn around" some problems with maintenance neglect, Starks says. Moviegoers will not see a change in ticket price or concessions, or in quality of films being booked. "The studios have been excited about a new player in the market in terms of playing off Loews," Starks says. "They get an advantage of being able to negotiate with someone else." And there may be more to come as Starks also hints that Meridian's ultimate goal is to build new theaters.
By summer, when they plan more of a grand-opening splash, Starks says Meridian's patrons should see a difference in the quality of service and commitment to community in the theaters. "We want people not just to say 'There's a movie coming out, what theater is it playing at?' but 'I want to hang out at Meridian.'"
(Elaine Richardson)
copyright 1999 New City Communications, Inc.