The looming auction date for properties owned by Charles Cohen’s Cohen Realty Enterprises, including the U.S. Landmark and UK Curzon arthouse cinema chains, is raising concerns within the indie film business. The potential closure of Landmark theaters would deliver a significant blow to an industry that is still grappling with the aftermath of the Covid-19 pandemic.
Fortress Credit Corp. initiated legal action against Cohen earlier this year for defaulting on a substantial loan secured by Landmark and other assets. The $534 million in loans from Fortress were collateralized by a range of properties, making this potential auction one of the most significant Uniform Commercial Code (UCC) claims in New York real estate history. The decision by the New York State Supreme Court judge to proceed with the auction highlights the financial stakes involved.
Independent distributors have raised concerns about the maintenance of Landmark theaters, with some expressing dissatisfaction over the potential loss of key locations. While a representative for Charles Cohen has assured that the theaters are not in jeopardy and will continue to support independent film, the uncertainty surrounding the auction outcome remains. Judge Joel M. Cohen’s decision to deny Fortress’ initial petition on technical grounds and subsequently grant the resubmitted request underscores the complex legal battle at hand.
The upcoming auction date for Cohen Realty Enterprises’ properties comes at a time when the exhibition industry is witnessing significant dealmaking. Sony’s recent acquisition of Alamo Drafthouse and the strategic lease acquisitions by major chains like AMC and Cinemark indicate a shifting landscape in the theater business. While the future of the Cohen-owned properties hangs in the balance, the broader market dynamics and competitive forces are shaping the industry’s trajectory.
The outcome of the auction for Cohen Realty Enterprises’ properties, particularly the Landmark theaters, will have far-reaching implications for the indie film business and the real estate market. As stakeholders closely monitor developments leading up to the November 8 auction date, the industry remains in a state of flux with both challenges and opportunities on the horizon. It is a critical juncture for Cohen Realty Enterprises and the broader theater industry as they navigate the complexities of legal disputes and market dynamics in a post-pandemic landscape.