Money issues force Carmi theater owners to shut doors | Business
Carmi Showtime Cinemas, doing business as The Carmi Fox Theater, has closed its doors after less than eight months in operation. Owners Michael and Tammy Fox say they were financially unable to continue operations and are now meeting with bankruptcy attorneys.
The couple says advances charged by distributors were higher than expected, and they weren’t able to get first run movies until as much as eight weeks later than their original release. They say local residents who wanted to see a new movie, chose to drive to Evansville instead of waiting. They claim Carmi residents didn’t support it and that most of their patrons came from outlying areas.
In a press release, the Foxes stated they were originally told most distributors required a $200-500 advance before the print was released but were actuallyforced to pay advances and guarantees of $500 to $2500 for movies on the opening date. In addition, they say the distributors charged up to 70% of box office receipts for first run movies and 35-50% on movies which had been out for a while.
They also say the cost of popcorn and soda increased after they bought the movie house and faced unexpected repair bills.
Michael Fox regrets the closing but says it was the only option open to him.
“We really loved owning the theater and making it an entertainment center we felt Carmi deserved,” Fox said.
Patrons have raised questions about refunds on recently purchased coupon books and advance passes but Fox says they won’t be able to announce anything until after discussing the matter with the bankruptcy lawyers.
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