CMX Cinemas: Premium Theater Chain Returns to Bankruptcy Court

CMX Cinemas, an operator of 28 premium dine-in theaters with 311 screens filed for Subchapter V protection on July 1, 2025, returning to bankruptcy court just four and a half years after emerging from its COVID-era chapter 11 with modified landlord leases.

Despite operating across eight states with approximately 1,400 employees, the CMX Cinemas chain elected streamlined small business procedures—a decision contested by landlord MN Theaters, which argued the company's actual qualifying debt exceeded the $3.4 million Subchapter V cap. Judge Laurel M. Isicoff rejected the eligibility challenge on November 13, 2025, and confirmed the Subchapter V plan four days later, preserving the theater chain as a going concern with existing equity intact. The reorganization, backed by parent company Cinemex—a Mexican cinema chain owned by mining conglomerate Grupo México and billionaire Germán Larrea—projects 100% recovery for unsecured creditors through semi-annual distributions from disposable income over three years.

Company History

CMX Cinemas traces its origins to Cinemex, a Mexican cinema chain founded in 1993 that pioneered multiplex theater formats in Mexico City. The company operates 301 multiplex theaters with 2,625 screens across 104 cities in Mexico. In 2008, Grupo México—Mexico's largest mining company—acquired Cinemex from AMC Entertainment for $311 million, adding theatrical exhibition to a conglomerate whose primary holdings span copper mining, railway transport through Ferromex, and infrastructure.

Grupo México and the Larrea family. Germán Larrea Mota-Velasco has served as chief executive officer of Grupo México since 1994, succeeding his father Jorge Larrea, who founded the company's predecessor construction business in 1942. The company ranks as the largest mine operator in Mexico and Peru, third largest in the United States, and fourth largest copper producer worldwide. Larrea controls the company through a 19.2% direct stake combined with his family holding company Empresarios Industriales de Mexico's 40.6% ownership. Entertainment holdings through Cinemex represent a small portion of this diversified conglomerate, and Cinemex announced plans in 2015 to enter the United States market with premium dine-in concepts.

U.S. market entry. CMX Cinemas opened its first U.S. flagship theater in April 2017 at the Brickell City Centre in Miami, Florida. The premium dine-in concept combined dining and beverage service with theatrical exhibition. CMX positioned itself in the premium segment with VIP amenities, in-seat dining service, and adult-only evening showings.

Cobb Theatres acquisition. Six months after opening its Miami flagship, CMX announced in October 2017 the acquisition of Cobb Theatres, a southeastern U.S. chain operating 287 screens at 25 locations throughout Florida, Georgia, Alabama, Illinois, Minnesota, North Carolina, Ohio, Virginia, Maryland, and Colorado. The acquisition closed on December 11, 2017, making CMX the eighth largest movie theater chain in the United States. Post-acquisition, the combined entity operated 30 sites across 10 states with 342 screens and 2,030 employees.

Cobb Theatres had introduced the CinéBistro dinner-and-a-movie concept in Miami and Tampa in 2008. The acquisition gave CMX a footprint across multiple states and the established CinéBistro brand.

The Premium Dine-In Concept

CMX Cinemas operates three theater concepts for the premium market. CMX Cinemas serves as the standard format offering reclining seats, full bar service, and an enhanced concession menu beyond traditional popcorn and candy. CMX Market provides a middle-tier option with fast-casual dining options and premium seating. CMX CinéBistro offers VIP service with in-seat table service throughout the film, a dinner menu, and a cocktail program.

CinéBistro experience. The CinéBistro format enforces age restrictions after 6 p.m., requiring all guests to be 21 or older. Auditoriums seat between 46 and 64 guests in leather recliners with individual table surfaces for dining, equipped with Dolby 7.1 surround sound systems. Guests must arrive at least 30 minutes before showtime to order from the full dinner menu before the film begins, with servers delivering courses during the screening.

Dining theater niche. According to court filings, Cinemex positioned itself in the dining theater niche to compete against streaming platforms. Management stated that traditional theaters—offering only snacks, sodas, and water—would increasingly struggle to compete with streaming services that provide lower cost and the convenience of watching films anytime from any location. By creating restaurants and bars on site with amenities such as in-seat dining, Cinemex aimed to offer an experience that streaming could not replicate. Most CMX locations occupy space within shopping malls, with only nine housed in standalone buildings, leveraging mall foot traffic while offering an alternative to adjacent food court options.

First Bankruptcy: COVID-19 (April 2020)

The COVID-19 pandemic significantly reduced theatrical exhibition when government-mandated closures shuttered cinemas nationwide beginning in March 2020. CMX's premium dine-in model depended on per-capita spending to support staffing levels, kitchen operations, and lease rates in retail locations. When theaters closed, revenue declined while fixed costs—particularly lease obligations—continued accruing.

April 2020 filing. CMX filed for chapter 11 bankruptcy protection on April 25, 2020, citing the pandemic's impact on operations. At filing, the company faced approximately $3.2 million in monthly rent obligations plus an additional $700,000 in taxes and insurance payments—nearly $4 million in monthly fixed costs with zero revenue. The 2020 bankruptcy encompassed a larger footprint than the 2025 filing: 41 movie theaters across 12 states with lease obligations covering upscale dine-in premises throughout.

Workforce reductions. CMX laid off virtually its entire workforce, reducing approximately 2,500 employees to fewer than 20. The small staff that remained handled essential administrative functions while all 41 theaters closed. Some locations remained closed for extended periods even after restrictions eased—one Minnesota theater stayed shuttered for 18 months.

December 2020 emergence. After six months of creditor negotiations, CMX emerged from bankruptcy in December 2020 with restructured landlord relationships. Landlords agreed to modified revenue-share leases under which they would receive a portion of theater profits rather than fixed rent payments. The asset sale to Wine & Roses, S.A. de C.V.—then a parent company affiliate—provided consideration sufficient to fund a reorganization plan with approximately 15% recovery for general unsecured creditors.

The confirmed plan included issuance of a Theater Level Cash Flow Note (TLCF Note) to the Cinemex GUC Claims Trust. This instrument would later become the subject of breach of contract litigation when the Trust alleged the reorganized debtors failed to honor the note's terms. On June 23, 2025—just days before the second bankruptcy filing—the Bankruptcy Court dismissed that complaint.

Reasons for the Second Filing

CMX's emergence from the 2020 bankruptcy did not end the pressures described in later court filings. While the first bankruptcy addressed pandemic-driven liquidity constraints, the industry conditions CMX faced upon reopening in February 2021 had changed.

Streaming platform disruption. The First Day Declaration identifies the growth of streaming platforms as a primary cause of renewed distress. During the pandemic, studios pivoted toward streaming-first or simultaneous release strategies, triggering streaming subscription growth that doubled to approximately $1.8 billion worldwide—and approximately $340 million in the U.S. market—between 2019 and 2025. Consumers grew accustomed to watching new releases at home, and the habit persisted even after theaters reopened. Streaming platforms also released productions directly to subscribers rather than theaters.

Post-pandemic attendance. Domestic cinema attendance remains at just 64% of pre-pandemic levels according to 2025 industry surveys. 2025 was tracking near 2024's performance and was projected to fall far short of the $9 billion in domestic ticket sales that industry analysts had expected.

Box office decline. The domestic box office reached $8.7 billion in 2024, down 3.3% from 2023 when revenues hit $9.04 billion and down 23.5% from 2019's $11.3 billion. Admissions fell to approximately 800 million from pre-COVID heights of roughly 1.3 billion. The 2024 softness reflected lingering effects of the 2023 actors and writers strikes, which halted nearly all major film and television productions and reduced the 2024-2025 release slate.

Lease burden. CMX's lease obligations were negotiated almost fifteen years ago under market conditions that have changed. According to the First Day Declaration, Cinemex spent approximately 22.6% of its annual revenues on lease-related expenses in fiscal year 2024. The company generated gross revenues of approximately $489 million between 2021 and 2024 but incurred costs and expenses exceeding $517 million, producing approximately $28 million in negative EBITDA over that period. Parent company Wine & Roses funded the shortfall through intercompany loans, leaving the debtors with approximately $50 million in intercompany debt at filing.

Reduced footprint. The CMX that filed in July 2025 was smaller than the company that emerged from its first bankruptcy. From 41 theaters across 12 states in 2020, the company had contracted to 28 theaters across 8 states—shedding roughly one-third of its locations while retaining approximately 1,400 employees.

Financial Position at Filing

The three debtors filed schedules showing assets between $50 million and $100 million individually, with aggregate assets of approximately $125 million on a consolidated basis. Liabilities were listed at $1 million to $10 million, though this figure excluded approximately $50 million in intercompany debt owed to parent Wine & Roses.

2024 financial performance. For the year ending December 31, 2024, CMX generated approximately $129 million in gross revenues on a consolidated basis: $64 million in box office ticket sales, $60 million in food and beverage sales, and $5 million from other sources including on-screen advertising. Total expenses reached approximately $133 million, producing a net loss of approximately $4 million before consideration of administration and marketing costs totaling $8.2 million.

First half 2025. Through June 30, 2025, the company generated gross revenues of approximately $61 million: $30 million in ticket sales, $28 million in food and beverage, and $3 million from other sources. Monthly expenditures exceeded $62 million, including film licensing fees, food and beverage costs, lease payments, and payroll.

Secured debt. The primary secured claim consists of a promissory note reflecting loans from parent Wine & Roses, with asserted collateral encompassing substantially all debtor assets valued at approximately $124 million. Three landlords—Old Orchard Urban Limited Partnership, Southgate Mall Owner LLC, and Countryside Mall, LLC—had filed UCC-1 financing statements granting rights to tangible personal property within their leased premises upon lease termination.

Subchapter V Eligibility Battle

CMX's decision to proceed under Subchapter V—the streamlined small business reorganization procedures added to the Bankruptcy Code in 2019—became a contested issue in the case. Subchapter V requires that qualifying debt not exceed approximately $3.4 million at filing.

MN Theaters' challenge. On September 3, 2025, landlord MN Theaters 2006 LLC filed an Eligibility Objection arguing that CMX's qualifying debts actually exceeded the statutory cap when properly calculated. MN Theaters—represented by Berger Singerman LLP and Milbank LLP—contended that the debtors were "big business" improperly using small business procedures designed for genuinely small enterprises.

Disputed debt categories. The eligibility fight centered on whether various debt categories should be classified as qualifying or non-qualifying (contingent/unliquidated):

MN Theaters argued that when these categories were properly included, total qualifying debt exceeded the $3,424,000 cap—disqualifying CMX from Subchapter V and requiring a traditional chapter 11 process with a creditors' committee and disclosure statement.

November 13 ruling. After briefing and a contested hearing, Judge Isicoff denied MN Theaters' objection on November 13, 2025, ruling that the debtors properly classified certain debts as non-qualifying. The ruling cleared the path for confirmation under Subchapter V procedures.

MN Theaters claim dispute. Separately from the eligibility challenge, CMX objected to MN Theaters' proof of claim asserting at least $12,630,892.56 in damages related to lease obligations. The dispute proceeded alongside the eligibility challenge.

Subchapter V Plan of Reorganization

CMX filed its initial Subchapter V plan on August 28, 2025, followed by an Amended Plan on September 5, 2025, proposing a going-concern reorganization that would preserve existing operations, assume modified leases, and distribute projected disposable income to creditors over three years.

Creditor Treatment.

The plan projected approximately 100% recovery for Class 3 general unsecured creditors. The estimated non-contingent, liquidated unsecured claims pool was approximately $1.9 million. Wine & Roses' intercompany claims were placed in Class 4 with no distribution until Class 3 receives full payment.

Distribution Schedule.

Distributions to creditors occur semi-annually from projected disposable income over a three-year commitment period:

• June 30, 2026
• December 31, 2026
• June 30, 2027
• December 31, 2027
• June 30, 2028
• December 31, 2028

Equity preservation. Class 5 equity interests were reinstated, preserving Cinemex's ownership through Wine & Roses.

Lease treatment. The plan assumed executory contracts and unexpired leases as of the Effective Date, curing defaults and preserving the theater network as a going concern. Landlords asserting rejection damages faced the statutory cap under § 502(b)(6), which limits landlord claims to the greater of one year's rent or 15% of the remaining lease term (not exceeding three years).

Contested Confirmation

Despite the Subchapter V framework's streamlined procedures, multiple landlords filed objections to plan confirmation on October 7, 2025:

MN Theaters' objection continued its litigation after the Subchapter V eligibility ruling. The limited objections from other landlords focused on specific lease treatment issues rather than plan structure.

Settlement activity. During the confirmation process, CMX reached settlements resolving landlord disputes. Liberty Center LLC's settlement was approved on November 19, 2025, and Liberty Center subsequently withdrew its proof of claim.

November 17 confirmation. The court entered the Confirmation Order on November 17, 2025, approving the plan as a consensual reorganization under § 1191(a). Consensual confirmation under § 1191(a) indicated that the debtors obtained sufficient creditor acceptance to satisfy voting requirements.

December 10 effective date. The plan became effective on December 10, 2025, with CMX filing a notice of substantial consummation. The Subchapter V Trustee filed a Report of No Distribution on December 22, 2025, and creditor payments were scheduled through the semi-annual distribution schedule beginning in June 2026.

Key Timeline

Professional Retentions

All professional fee applications were approved in November and December 2025, with debtors' counsel and advisors submitting first and final applications reflecting the streamlined Subchapter V timeline.

Industry Context: Movie Theater Distress

CMX's second bankruptcy occurred during continued pressure across theatrical exhibition, with attendance and box office remaining below pre-pandemic levels.

Attendance levels. Domestic cinema attendance remains at just 64% of pre-pandemic levels five years after COVID-19 first shuttered theaters. The industry sold approximately 800 million tickets in 2024 compared to roughly 1.3 billion in 2019—a decline of approximately 500 million annual admissions. For premium dine-in operators like CMX, where food and beverage revenue represents nearly half of total sales, lower attendance reduces ancillary spending.

Screen closures. Approximately 5,700 movie screens have been shut down since COVID as operators close underperforming locations. The consolidation has been uneven: premium large-format screens have performed relatively well, with IMAX delivering a record $1.2 billion global box office in 2025, while standard screens have seen more closures.

Streaming structural shift. Studios now treat streaming platforms as primary distribution channels for much of their content rather than theatrical aftermarkets. Films that would have received wide theatrical releases in 2019 now debut directly on streaming services, bypassing cinemas entirely. When theatrical releases do occur, windows have compressed—films move from theaters to streaming within weeks rather than the months-long exclusivity periods that once protected theatrical revenue.

Premium positioning. IMAX reported a record $1.2 billion global box office in 2025, while CMX continued to operate premium dine-in formats with food and beverage revenue representing nearly half of total sales.

Frequently Asked Questions

Why did CMX Cinemas file for bankruptcy again?

CMX filed its second chapter 11 in five years as streaming platforms expanded and domestic theater attendance remained at just 64% of pre-pandemic levels. The 2023 Hollywood strikes reduced the 2024-2025 film slate, lowering attendance. Additionally, lease obligations negotiated fifteen years ago under different market conditions consumed approximately 22.6% of annual revenues.

What is Subchapter V and why did CMX use it?

Subchapter V is a streamlined small business bankruptcy procedure added to the Bankruptcy Code in 2019 that allows debtors with qualifying debt below approximately $3.4 million to reorganize more quickly with lower costs. Subchapter V permits equity retention even when creditors are impaired, allowing CMX's parent company to maintain ownership.

Did the Subchapter V eligibility challenge succeed?

No. Landlord MN Theaters argued that CMX's actual qualifying debt exceeded the statutory cap when properly accounting for film distribution obligations, payroll, PTO liabilities, and sales taxes, but Judge Isicoff rejected the challenge on November 13, 2025, ruling that the debtors properly classified certain debts as non-qualifying contingent or unliquidated obligations.

How will creditors recover under the plan?

The plan projects approximately 100% recovery for Class 3 general unsecured creditors through semi-annual distributions from disposable income over three years (2026-2028). Secured creditors are unimpaired. Wine & Roses' intercompany claims are subordinated in Class 4, receiving no distribution until third-party unsecured creditors are paid in full. Equity interests in Class 5 are reinstated.

Who owns CMX Cinemas?

CMX is owned by Cinemex, Mexico's major cinema chain, which is in turn owned by Grupo México—the country's largest mining company—controlled by billionaire Germán Larrea. Grupo México acquired Cinemex from AMC Entertainment for $311 million in 2008. Wine & Roses, S.A. de C.V., a Mexican corporation and Cinemex affiliate, directly holds Cinemex Holdings USA.

What happened in the 2020 bankruptcy?

CMX filed for chapter 11 on April 25, 2020, due to COVID-19 theater closures. The company laid off nearly all 2,500 workers and emerged in December 2020 after negotiating modified revenue-share leases with landlords and completing an asset sale to affiliate Wine & Roses. The confirmed plan provided approximately 15% recovery for general unsecured creditors plus issuance of a Theater Level Cash Flow Note.

How has CMX's footprint changed between bankruptcies?

CMX operated 41 theaters across 12 states at the time of its 2020 bankruptcy but filed the 2025 case with just 28 theaters across 8 states—a reduction of approximately one-third of locations. The workforce declined from approximately 2,500 employees pre-pandemic to approximately 1,400 at the 2025 filing.

What are CMX's theater concepts?

CMX operates three concepts: CMX Cinemas offers standard premium seating with enhanced concessions and bar service; CMX Market provides a middle-tier option with fast-casual dining; and CMX CinéBistro delivers a VIP experience with in-seat table service, a dinner menu, a cocktail program, and 21+ age restrictions after 6 p.m.

What is the current status of CMX?

The Subchapter V plan was confirmed on November 17, 2025, and became effective on December 10, 2025. All 28 theaters continue operating as a going concern under existing ownership, with creditor distributions scheduled to begin in June 2026.

How does this case compare to broader theater industry distress?

CMX is part of a broader pattern of theater chain restructurings as the industry contends with streaming competition and reduced attendance. Domestic box office remains 23.5% below 2019 levels, approximately 5,700 screens have been shut down since COVID, and attendance has stabilized at just 64% of pre-pandemic figures.

Who is the claims agent for CMX Cinemas?

Omni Agent Solutions, Inc. serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

Read more restructuring case research and analysis on the ElevenFlo blog.