Kansas City, Mo. -- AMC Entertainment Inc. (AMC), one of the world's largest theatrical exhibition and entertainment companies, announces today that its wholly owned subsidiary, American Multi-Cinema, Inc., will not exercise its option to extend the lease for AMC The Grand 24, currently held by EPT Down REIT II Inc., a subsidiary of Entertainment Properties Trust (EPT).
This marks the end of an era, as AMC The Grand 24 was the first megaplex - a theatre with 14 auditoriums or more and stadium seating - ever built in the United States in 1995.
"It's disappointing that we have not come to terms on a historical, and to us, a somewhat sentimental property," said Gerry Lopez, AMC's chief executive officer and president. "But in our opinion, the proposal advanced by EPT is simply untenable. We continue to negotiate with EPT on several other properties and will see where those discussions take us."
The EPT lease contains a notice deadline of May 31, 2010 to exercise its renewal option. Because AMC elected not to exercise its option to renew the lease, it will now expire on Nov. 30, 2010. AMC will vacate the premises and remove its equipment prior to this date.
"Throughout the past 15 years at AMC The Grand 24, we made history and developed many friends in the community" said Mark McDonald, AMC's executive vice president of global development. "We will miss them."