Including the general contractor, 22 different contractors have filed liens against this Studio Movie Grill location owned by the movie theater chain itself, which operates 35 locations throughout the United States. All 22 mechanics liens were processed by the Sacramento County clerk’s office.
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On a national-level, Studio Movie Grill reportedly owed at least $7.2M in unpaid construction work as of January 2020 following 11 different lien filings. Combined with Studio Movie Grill’s current lien totals from the Citrus Heights project, the movie theater chain now owes at least $14M to contractors.
Movie theater chains such as AMC Theaters and Cinemark are also facing mechanics lien troubles amid the coronavirus outbreak, along with potential bankruptcy.
General Contractor has checkered payment history
The 22 contractors are allegedly owed a total of $6,856,433.72 for work taking place at a Studio Movie Grill theater in Citrus Heights, which is located at 8501 Auburn Blvd, Citrus Heights, CA. From nearby Sacramento, the theater is nearly 17 miles northeast along Interstate 80.
According to the lien affidavits, the largest lien was filed by the project’s general contractor, Construct & Maintain Corp., against Studio Movie Grill pursuant to California statutes governing mechanics liens.
On April 3, 2020, Construct & Maintain Corp. (C&M Corp) filed a lien valued at $4,489,111.21, which accounts for 65% of the total funds withheld from contractors on this job site.
C&M Corp is now facing at least four mechanics lien claims from subcontractors on the same project, totaling $1,330,011.31. Subcontractor Juan Torres Construction Inc. has filed the largest lien against the GC to date, claiming $640,275.40 as of May 12, 2020.
Juan Torres Construction Inc. is now linked to at least four lien claims of their own amid non-payment from C&M Corp. The subcontractor now owes a total of $133,286.39.
Data from the company’s payment profile shows that Construct & Maintain Corp have made on-time payments on just 79% of known jobs in 2020. The reviews from subcontractors are mixed. “There team was so easy to work with and made sure everything was handled in a professional manner,” according to a recent reviewer. “They’re not an honest contractor,” reported another. “[They] deliberately hide important facts and details from their subs to force them into bad positions.”
Nearby Studio Movie Grill Closed Due to Coronavirus
Aside from the Studio Movie Grill being constructed in Citrus Heights, there is another Studio Movie Grill location already operating just 8 miles north along Interstate 80 in Rocklin, CA.
As of July 12, 2020, NBC affiliate, KCRA reported that the Studio Movie Grill location in Rocklin has shut its doors in an effort to stop the spread of COVID-19.
Including the new location in Citrus Heights, Studio Movie Grill currently has eight theaters in California.
Movie Theater Chains Struggling with Liens & Potential Bankruptcy Amid COVID-19
Studio Movie Grill is not the only movie theater chain faced with mechanics liens, as movie theater giant AMC Theaters also faced over $1.75M in mechanics lien claims as of June 2020.
The construction debt came at a time when AMC Theaters was pressed with a potential bankruptcy filing and reported a quarterly loss of $2.17 billion in the midst of the COVID-19 pandemic.
While there was speculation back in April 2020 that AMC Theaters would soon be faced with a bankruptcy filing, recent reports suggest otherwise. According to a Fox Business report published on July 7, 2020, AMC Theaters is in the process of reaching a restructuring deal to avoid bankruptcy.
Movie theater competitor Cinemark was also presented with $630.2K in lien claims, owed to at least three different Florida contractors between April and June of 2020.