Muvico sells lavish Arundel Mills theater

Muvico, the company that built an Egyptian temple at Arundel Mills mall where cinema was god, has sold its 24-screen theater in a bid to stave off bankruptcy.

Texas-based Cinemark USA bought the Muvico Egyptian 24 in Hanover and three other theatres as part of a multi-million deal.

James Meredith, Cinemark's vice president of marketing and communications, said moviegoers should not notice any change other than the theater's brand name.

"Our customers will not experience any type of interruptions and will be able to experience a seamless transition," he said.

With an elaborate design that includes massive columns, a statue of the Egyptian god Anubis and artwork evoking the age of the pharaohs, the Muvico Egyptian opened in December 2000, less than a month after the mall opened. Often one of the highest-grossing theaters in the nation for box-office debuts, the theater has been part of what makes Arundel Mills a top tourism destination in the state.

But Florida-based Muvico ran into trouble as the recession hit the credit markets. The company said it would use the proceeds of the sale to retire a $55 million debt to iStar Financial.

The Miami Herald and other Florida newspapers have reported that the company has been in default since October and is in danger of being taken over by iStar. The other three Muvico theatres included in the sale are in Florida.

Generally, movie theaters do especially well during economic times, said

Patrick Corcoran, spokesman for the National Association of Theater Owners. Movie theaters' box office revenue and admissions numbers increased during five of the last seven recession years, he said.

This year has been a strong year for the industry in the United States and Canada so far with two films released already grossing $100 million, Corcoran said.

The change of theater owners is nothing new in Anne Arundel County. In late 2006, Bow Tie Cinemas bought the Crown Theatres at Westfield Annapolis mall and the Harbor Center with a combined 20 screens.

To make the transition at Arundel Mills smooth, Meredith said Cinemark will honor all previously purchased Muvico gift cards, tickets and group packages until the end of May. All Muvico employees have been offered employment with Cinemark.

"We believe that they are going to be an excellent operator at Arundel Mills," said Gene Condon, general manager of Arundel Mills. "I don't think the customers are going to notice anything other than the name change in the near future."

Joseph Amaturo, a south Florida entrepreneur and Muvico investor, has invested additional capital in Muvico to help the company add amenities and upgrades to its existing facilities.

"A newer, smaller and debt-free Muvico will be the perfect platform to grow the company," said Michael Whalen Jr., president and CEO of Muvico. "Muvico is now well positioned to take our brand and further develop our identity beyond just movies into a broader entertainment enterprise."