Cineplex to End Distribution Efforts

Cineplex Odeon Corp. will discontinue its theatrical distribution operations as part of a limited restructuring of its Cineplex Films Inc. unit, a spokesman said Monday.

Toronto-based Cineplex said earlier this month that it was “evaluating its ongoing participation” in the U.S. distribution business as a result of the division’s losses. In the first quarter of 1989, the U.S. distribution operations recorded a loss of $16.1 million before allocation of related corporate expenses. Cineplex attributed the loss to the poor performance of theatrical releases “Talk Radio,” “Rooftops” and “Jackknife.”

The spokesman said 12 employees have been laid off as a result of the restructuring but wouldn’t comment as to whether Cineplex expects any special charges or writeoffs.

Films in the United States will now be distributed through third parties, a practice described as “common for independent distributors,” the spokesman said. There will be no changes in the company’s Canadian or overseas distribution networks, he said.