Last month, I’d discussed whether Cineplex (TSX:CGX) was headed toward bankruptcy. The COVID-19 pandemic forced theatres across North America to close their doors for the entirety of the spring season. When the summer arrived, theatre companies were forced to adjust to chaotic conditions and take a regional approach. Shares of Cineplex, the largest movie theatre operator in Canada, have plunged 76% in 2020 as of close on August 7.

Today, I want to look at how conditions may change for Cineplex for the rest of 2020.

Cineplex has started its phased reopening

In July, Ontario allowed for most regions to enter phase three of its reopening plan. Unfortunately, movie theatres were still left in a precarious position. The province stipulated that theatres could only allow up to 50 patrons per individual screen. Cineplex and other operators argued that this was not financially feasible. The company hoped to lobby the government for an exception for this industry.

On July 31, Cineplex unveiled its own phased reopening. This began with 25 locations opening on July 31, each adhering to the 50 individuals per screen regulation. The company expects that most its locations will open in the next several weeks. Ontario, Canada’s most populous province, was the last to reopen theatres to the public.

Will this be enough to give Cineplex a boost in the latter half of 2020? CLICK for complete article