Rave Cinemas

Rave Cinemas was a United States movie-theater brand and operating company that developed from the Rave Motion Pictures business. The chain was founded in 1999 and operated multiplex cinemas across multiple American states. Its venues generally emphasized contemporary multiplex amenities, including stadium seating, large luxury recliners, digital projection, surround sound, expanded legroom, online and kiosk ticketing, concessions, arcade areas, and, at selected sites, RealD 3D presentation and special-event spaces. The corporate structure behind the brand changed substantially in the late 2000s. In late 2009, TowerBrook Capital Partners, together with Lambert Media Group and Charles B. Moss Jr., formed Rave Cinemas, LLC. The new company acquired four properties, corporate infrastructure, management leadership, and the Rave Motion Pictures brand from Boston Ventures-owned Rave Reviews Cinemas, LLC. Under a management-services arrangement, Rave Reviews Cinemas continued to own 21 other properties that operated under the Rave Motion Pictures name. At the same time, the newly formed Rave company acquired the business operations and real estate of 35 theaters from National Amusements, the theater and media company associated with Viacom and CBS. Those properties were subsequently rebranded under the Rave Motion Pictures identity during the second quarter of 2010. At its largest stated pre-sale scale in 2012, Rave owned or managed 62 theaters with 939 screens in 21 states. The network included conventional multiplexes as well as venues incorporating premium seating, digital cinema systems, large auditoriums, and selected 3D screens. Rave also operated Rave Digital Media, a related brand based in Columbus, Ohio, with six properties. The company’s technology program included a major partnership with Christie Digital and AIX: beginning in 2006, Rave announced plans to install 445 digital cinema systems, with conversion of existing theaters reported as complete in 2007. The chain also used Barco projection equipment at certain properties acquired from National Amusements. Rave’s independent corporate existence ended through a series of asset sales and divestitures. In October 2012, Rave Reviews Cinemas agreed to sell 16 theaters containing 251 screens to Carmike Cinemas for cash consideration and assumed lease obligations. In November 2012, Cinemark agreed to acquire 32 Rave locations for $240 million, subject to regulatory approval. AMC Theatres separately agreed to acquire additional properties that were not included in the Carmike, Cinemark, or Starplex transactions. Starplex later purchased the Berlin 12 theater in Connecticut, while Rave Digital Media was sold to AMC in January 2013. Cinemark completed its acquisition of the principal Rave Cinemas assets on May 29, 2013. Antitrust remedies required several theaters to be divested, including the Stonybrook 20 and IMAX in Louisville, the Ritz Center 16 in southern New Jersey, and the Hickory Creek 16 in Texas; Carmike announced the purchase of those sites, with the transaction closing in August 2013. Some former Rave properties were converted to Cinemark, AMC, Carmike, or other theater brands. As a result, Rave Cinemas ceased to function as a significant standalone national theater chain, although its former locations and operating concepts continued within successor companies.

Rave Cinemas emerged from the Rave Motion Pictures theater business, which dated to 1999. Its operating model centered on multiplex cinemas in the United States, with venues designed to combine mainstream film exhibition with upgraded comfort and technology. Typical features included stadium seating, reclining or oversized luxury seats, retractable armrests, cup holders and tray tables, substantial row spacing, digital projection, DTS surround sound, multiple concession stands, arcade games, online ticketing, ticket kiosks, and illuminated digital displays. Some locations offered RealD 3D systems and event-oriented rooms. Newly built theaters were described as fully digital in both picture and sound, although inherited properties did not necessarily share the complete design specification. A major corporate reorganization occurred in late 2009. TowerBrook Capital Partners, Lambert Media Group, and Charles B. Moss Jr. formed Rave Cinemas, LLC and acquired four properties, the operating infrastructure, leadership, and brand assets associated with Rave Motion Pictures from Boston Ventures-owned Rave Reviews Cinemas, LLC. Rave Reviews Cinemas retained 21 other properties that continued to use the Rave Motion Pictures name under a management-services agreement. The new company also purchased the operating business and real estate of 35 theaters from National Amusements. Those locations were rebranded during the second quarter of 2010, expanding Rave’s footprint and giving it a much larger operating base. Technology investment was an important part of the chain’s development. In June 2006, Rave announced a partnership with Christie and AIX to deploy 445 digital theater systems. Existing installations were already operating at some locations, and the reported conversion of the existing circuit was completed in August 2007. Different ownership histories produced a mixed equipment estate: theaters acquired from National Amusements used Barco projectors in some cases, while other Rave properties used Christie systems. Later transfers to Cinemark, AMC, and Carmike resulted in further equipment and branding changes. The chain reached a reported pre-sale scale of 62 theaters and 939 screens in 21 states. Its portfolio also included Rave Digital Media, a Columbus, Ohio-based related business operated with Continental Retail Development and comprising six properties. Rave Digital Media was sold to AMC in January 2013. The broader Rave portfolio began to fragment in 2012, when Rave Reviews Cinemas agreed to sell 16 theaters with 251 screens to Carmike. The transaction involved $19 million in cash and $100.4 million in assumed lease obligations, according to the cited reference. In November 2012, Cinemark agreed to buy 32 Rave Cinemas locations for $240 million. The deal required antitrust review and resulted in several mandated divestitures. AMC separately acquired or agreed to acquire theaters not included in the principal Carmike, Cinemark, and Starplex transactions. Starplex purchased the Berlin 12 theater in Connecticut in May 2013. Cinemark completed its main Rave acquisition on May 29, 2013. To address competition concerns, Cinemark sold the Stonybrook 20 and IMAX in Louisville, the Ritz Center 16 in southern New Jersey, and the Hickory Creek 16 in Texas; Carmike announced the purchase, which closed on August 16, 2013. Cinemark retained a Denton, Texas, location. The acquisition also affected the Movie Tavern business associated with Cinemark chairman Lee Roy Mitchell. Following the required sale, Southern Theatres acquired Movie Tavern in September 2013. Cinemark subsequently developed its own dinner-and-a-movie format under the Movie Bistro name. Over time, many former Rave sites adopted Cinemark, AMC, Carmike, Starplex, or other successor branding. Rave therefore became a defunct standalone brand following the 2013 asset restructuring, while its former properties, staff, equipment, and operating practices continued under successor theater companies.

• 2013

  Cinemark acquisition completed

  [1]Rave Cinemasen.wikipedia.org

  Cinemark completed its acquisition of the principal Rave Cinemas assets on May 29, followed by required theater divestitures.

• 2012

  Portfolio sales began

  [1]Rave Cinemasen.wikipedia.org

  Rave-related companies announced theater sales to Carmike, Cinemark, and other industry buyers.

• 2010

  National Amusements theaters rebranded

  [1]Rave Cinemasen.wikipedia.org

  Thirty-five acquired National Amusements properties were rebranded under the Rave Motion Pictures identity during the second quarter.

• 2009

  Rave Cinemas, LLC formed

  [1]Rave Cinemasen.wikipedia.org

  TowerBrook Capital Partners and other investors formed Rave Cinemas, LLC and acquired selected Rave assets and operations.

• 2007

  Reported completion of existing-theater digital conversion

  [1]Rave Cinemasen.wikipedia.org

  The conversion of existing Rave theaters under the Christie digital-cinema program was reported as complete in August.

• 2006

  Digital cinema partnership announced

  [1]Rave Cinemasen.wikipedia.org

  Rave announced a Christie/AIX program intended to install 445 digital theater systems.

• 1999

  Rave Motion Pictures founded

  [1]Rave Cinemasen.wikipedia.org

  The theater business that later operated under the Rave Cinemas name was founded in the United States.

A modern, technology-oriented multiplex operator positioned around comfortable seating, generous legroom, digital presentation, broad concession facilities, and enhanced cinema amenities.

• Movie theaters · 1999

  Rave multiplex cinemas

  Rave’s core offering was theatrical exhibition through multi-screen cinemas across the United States. Venues commonly combined stadium seating, digital picture and sound, luxury reclining seats, expanded legroom, concessions, ticket kiosks, online ticketing, and arcade entertainment. Individual inherited properties varied in amenities.

• Premium cinema presentation

  Rave 3D theaters

  Selected Rave locations were equipped with RealD 3D systems, allowing the chain to present compatible feature films in stereoscopic format. Availability depended on the individual auditorium and location rather than being universal across the circuit.

• Digital cinema brand

  Rave Digital Media

  Rave Digital Media was a related cinema brand operated with Continental Retail Development. It was headquartered in Columbus, Ohio, and operated six properties before being sold to AMC Theatres in January 2013.

• 2012

  Sell and restructure the theater portfolioM&A

  Background

  Rave’s theater assets were divided among several buyers as the company pursued a broad portfolio restructuring.

  Action taken

  The company and related entities agreed to transactions involving Carmike, Cinemark, AMC, and Starplex.

  Aftermath

  The transactions dismantled Rave’s national network and prepared the principal assets for Cinemark ownership, with additional antitrust divestitures following completion.

  Cinemark purchase price for 32 locations. $240 million (Agreement announced November 2012)

  • Carmike Cinemas — Agreed to acquire a separate group of Rave theaters and later purchased required divestiture properties.
  • AMC Theatres — Agreed to acquire additional Rave theaters and the Rave Digital Media business.
  • Starplex Cinemas — Purchased the Berlin 12 theater in Connecticut.

  Source

• 2009

  Create a new Rave operating company and expand through acquisitionsStrategy

  Background

  Investors sought to assemble a larger theater platform from selected Rave assets and newly acquired National Amusements properties.

  Action taken

  Rave Cinemas, LLC acquired properties, corporate infrastructure, leadership, and brand assets from Rave Reviews Cinemas and purchased the operations and real estate of 35 National Amusements theaters.

  Aftermath

  The acquisitions expanded the circuit and brought the reported network to 62 theaters and 939 screens before the later divestiture program.

  Source

• 2006

  Deploy a large-scale digital projection networkProduct launch

  Background

  Rave sought to modernize its auditoriums and expand digital movie presentation across the circuit.

  Action taken

  The company announced a Christie/AIX partnership covering 445 digital theater systems, with the existing-theater conversion subsequently reported complete in 2007.

  Aftermath

  Rave’s circuit adopted digital presentation, although equipment varied across properties acquired from different owners.

  Source

1. 1Rave Cinemasen.wikipedia.org