Campbell’s Pruneyard Cinemas will remain open after reaching an agreement with its landlord, Regency Centers, resolving a long-standing dispute over rental rates.
Averted Closure
The announcement, made Friday, reverses the theater’s previous notification that rising costs would force a permanent closure by the end of the month. Pruneyard Cinemas communicated the positive development via a banner on its website and a brief email to customers.
While details of the agreement remain undisclosed, the theater has been engaged in a years-long dispute with Regency Centers, culminating in a lawsuit filed in December. The lawsuit alleged unfair rent increases and mismanagement of The Pruneyard shopping center, citing declining foot traffic and the closure of other businesses.
Both Pruneyard Cinemas and Regency Centers declined to comment on the specifics of the agreement.
Impact on the Community
News of the potential closure had caused concern among patrons and neighboring businesses, who rely on the theater’s foot traffic. Pruneyard Cinemas acknowledged the “overwhelming support” received from the community, stating that customer enthusiasm played a role in reaching a resolution.
Pruneyard Cinemas attributed its financial difficulties to broader economic shocks, including the COVID-19 pandemic and the 2023 Hollywood strikes. Beyond traditional film screenings, the theater has diversified its offerings to include events like comedy shows and drag queen bingo.
Frequently Asked Questions
What led to Pruneyard Cinemas nearly closing?
Rising rental costs and economic challenges facing the theater industry, including the COVID-19 pandemic and the 2023 Hollywood strikes, led the company to announce plans to close.
Did Pruneyard Cinemas disclose the terms of the agreement with Regency Centers?
No, the company’s announcement included no details about the agreement with Regency Centers.
What other types of events does Pruneyard Cinemas host?
In addition to film screenings, Pruneyard Cinemas hosts events such as comedy shows and drag queen bingo.
What does the future hold for Pruneyard Cinemas and its relationship with Regency Centers?
