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Cineworld planned to sell off The Rec Room and Cineplex’s signage business

Click to play video: 'Cineplex hopes to lure back moviegoers with new club'
Cineplex hopes to lure back moviegoers with new club
WATCH: Cineplex hopes to lure back moviegoers with new club – Aug 11, 2021

Cineworld Group PLC’s chief executive was planning to sell off Cineplex Inc.’s The Rec Room and signage business in a secret initiative he called “Project Jumanji.”

The U.K. cinema chain’s head Moshe “Mooky” Greidinger testified Wednesday at the Ontario Superior Court of Justice that his company was planning to find buyers for the businesses.

Greidinger was planning for the sale as he worked to close a $2.8-billion deal Cineworld signed in December 2019 to acquire Cineplex.

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He said he wanted to rid Cineplex of the businesses because Cineworld’s focus was primarily on theatres and it didn’t have the expertise to keep other ventures open.

Greidinger and Cineworld worked to sell the businesses before June 2020, when they backed out of the takeover deal and blamed Cineplex for breaching its terms.

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Cineplex has focused on its The Rec Room arcade and dining venues, as well as a digital sign business to offset swings in the box office and increased streaming options.

Click to play video: 'The Rec Room opens eighth Canadian location in Winnipeg'
The Rec Room opens eighth Canadian location in Winnipeg

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