Curtain closes on IMAX

Property owner blames poor results, to rethink plans for Aquarium Wharf

The five-story-tall screen at the Charleston IMAX Theatre went dark for good Monday, a move blamed on poor financial results.

The local IMAX operator, Rivers Enterprises Inc., said in a statement that it will review its strategy for its Concord Street theater and for the surrounding retail and office spaces that it leases to businesses.

Rivers Enterprises ran the IMAX at its waterfront Aquarium Wharf property for the past seven years. In December, the company announced plans to shutter the attraction in a matter of weeks, but it later changed course and committed to another full year of screenings.

John M. Rivers Jr., chief executive of River Enterprises, was traveling Monday and could not be reached for comment. Other company officials also could not be reached.

In December, Rivers said his real estate development firm was seeking outside sources of capital for the IMAX business and studying attendance trends at area tourist attractions. He declined to say if the 415-seat theater was profitable or if once-disappointing ticket sales improved in recent years.

"I think it has served a public need," Rivers said at the time.

The Charleston IMAX opened in mid-2000, but it faltered from the start. Millennium Leisure Inc., a South African company that originally operated the business, was pushed out of its 20-year lease a few months later after it allegedly stopped paying its rent.

The abrupt closure Monday could be a blow for nearby businesses, most notably the South Carolina Aquarium, which is next door to the theater. The IMAX and the aquarium sold "combination" tickets good for admission at both. Roughly 1 in 100 visitors to the aquarium from January to August this year bought their tickets at the IMAX, according to aquarium spokeswoman Beth Nathan.

"We feel really confident that we can convert those guests, but we're definitely sorry to lose them, both as a neighbor and a partner," Nathan said.

The city, which helped bankroll the aquarium and orchestrated much of the surrounding development, said in a statement Monday that it would help create a "fresh strategy" for the theater.

The city also said the theater's demise can be blamed partly on troubles at IMAX Corp., the Canadian company that produces the large-format films and sells the corresponding giant screens and projectors to theater operators. The Ontario-based business was rocked by an accounting scandal that forced it to restate its financial results for the past five years.

Recently, the movie company swung to a $4.6 million loss in the quarter that ended June 30. Its revenue slumped 28 percent in those three months as installations of high-tech IMAX projectors and screens faltered.

IMAX Corp. said its format is still vibrant and popular. The company's failures and successes likely had little effect on returns at the Charleston theater, according to Rich Gelfond, co-chief executive.

"Unfortunately, operating a stand-alone theatre at that location proved challenging," Gelfond said in a statement Monday. He also said the company hopes "to return to the Charleston market at a future time, with the right partner in the right location."

Renowned for their breathtaking cinematography and crystal-clear images, IMAX's panoramic films are shot with special cameras and 70 mm film. The movies tend to be short documentaries on a wide range of topics.

In recent years, IMAX operations realized strong box-office returns by screening major Hollywood releases, such as the Spiderman and Harry Potter films.

Reach Kyle Stock at 937-5763 or kstock@postandcourier.com.