"Cinema Park" chain began to close cinemas in Moscow shopping centers

Cinemas of the Cinema Park/Formula Kino chain have been recently closed in several shopping centers in Moscow.  It happened due to the current economic situation and falling revenue.  The partners are negotiating the possibility of withdrawing from the contracts, but litigation is not ruled out.

According to a representative of the cinema chain, the closure of the outlets is an extreme step, and they can resort to it in a situation if the site becomes unprofitable. At the same time, two cinema halls in the shopping centers of Moscow have already stopped their work. In total, the chain owns 76 objects, a third of which are in the capital.

The company noted that negotiations with all the landlords on the terms of lease agreements are underway.

According to Bulat Shakirov, the head of the Union of Shopping Centers, as a rule, so-called indissoluble contracts are concluded with cinemas. This means that the lease cannot be terminated before the expiration date specified in the agreement. Such rules are related to the fact that the presence of a cinema hall affects the traffic of the shopping center, and the landlord is interested in the audience coming. In the current situation, it is possible that the termination of the agreements is fraught with lawsuits and penalties, Izvestia reports.