Insolvent Rolan: the landlord bankrupts the structure of the Five Stars cinema chain

The owner of the Rolan cinema building has filed for bankruptcy of one of the structures of the Five Stars cinema chain. The company that ran Rolan has failed to cope with the growth of rental prices. For the last year and a half, the movie theater has been out of operation, and the owner of the building has been unable to find new tenants. The rent issue is the toughest for the movie theater business in recent years, experts say. 

According to the information that Kommersant found in the court files, on April 19 the Moscow Arbitration Court registered a claim of FSUE FT Center to declare bankrupt Paradise Rolan LLC. The basis of the claim is a court decision, according to which 5.6 million rubles of the debt on the cinema rent must be recovered from Paradise Roland in favor of the FSUE. The court hearing to check the validity of the claim is scheduled for June 17. Gevorg Nersisyan, one of the founders of Paradise, has not responded to the request; no representatives of FT Center were available for contact.

Given the state of the film distribution market, Rolan was for the Paradise group more an object of subsidies, rather than a source of profit, says the head of the Dispute Resolution practice of ART DE LEX Anastasia Vasilenko: «The quality and condition of Rolan’s film exhibition equipment are morally and physically obsolete and require substantial investment. There is reason to believe that the loss of the cinema is more likely to have a positive impact on the entire Paradise group, allowing to direct the proceeds to more promising areas». 

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