GRAND RAPIDS — A partnership of Mason Asset Management and Namdar Realty Group has acquired the majority of the assets of Goodrich Quality Theaters Inc., which filed for Chapter 11 bankruptcy in February.
The $12 million deal, which includes 12 theater locations in Michigan, seven in Indiana, two in Missouri and one in Illinois, took effect on July 13, according to a statement. That includes West Michigan locations in Ada/Lowell, Grand Haven, Kalamazoo, Holland, Battle Creek, Hastings and Cadillac.
The buyers, both based in Great Neck, N.Y. and doing business under Goodrich Theater Newco LLC, a Delaware corporation, are working with theater operator VIP Cinemas to manage the 21 locations. They anticipate opening some locations by the end of July, as allowed by various state restrictions related to COVID-19.
“We are truly excited to be acquiring and reopening the GQT theaters and we remain optimistic about the future of the industry,” stated Mark McSparin, president of the New GQT. “We will reopen with the main objective of maintaining quality operations for our guests through cleanliness, customer service, and value. The Goodrich name has been in the theater business for 90 years and we believe that it is important to keep the name going for many more years to come.”
The buyers also retained the majority of Goodrich Quality Theaters’ former general managers and staff, and plan to honor former gift cards and loyalty programs, according to a statement.
The sale, which was approved by the U.S. Bankruptcy Court for the Western District of Michigan, did not include a theater in Oswego, Ill., which was sold in a separate $4.95 million deal to Downers Grove, Ill.-based Tivoli Enterprises Inc., according to court records.
As well, court records indicate that Goodrich Quality Theaters sold its 50-percent stake in Florida-based Gibsonton Theaters LLC for $1.1 million to AP Gibsonton LLC.
Goodrich Quality Theaters filed for bankruptcy on Feb. 28, prior to the widespread outbreak of the COVID-19 pandemic. At the time, the company said in court filings that it had assets of $50 million to $100 million and liabilities of $10 million to $50 million.
In an interview with MiBiz at the time of the filing, owner Bob Goodrich said the company’s problems stemmed from a variety of factors, namely that streaming services such as Netflix have taken away audience for traditional movie theaters. As a result, business was down “not horribly” by 5-6 percent in 2019, he said.
On Feb. 24, Goodrich Quality Theaters defaulted on $29.58 million in loans, plus $99,577 in interest, to lenders CIBC of Grand Rapids, Holland-based Macatawa Bank and Grand Rapids-based Independent Bank, according to filings.
Goodrich Quality Theaters is represented in the case by Keller & Almassian PLC and Law Office of Tyrone Bynum PLLC, both based in Grand Rapids.