By Kathianne Boniello
Several Bayside businesses and residents housed in the Bayside Movie Theater had the rug pulled out from under them this week when United Artists Theatre Co. asked the U.S. Bankruptcy Court to let it cancel hundreds of leases and contracts across the country.
In 1999 United Artists — which filed for Chapter 11 bankruptcy protection from its creditors that same year — attempted to sell its Bayside theater at 38-39 Bell Blvd. to Forest Hills developer Heskel Elias. The proposed sale ignited a wave of protest from Bayside civic leaders, who opposed major redevelopment of the still active theater.
The papers filed by UA on Jan. 19 in the Delaware District of the U.S. Bankruptcy Court list dozens of contracts and commercial and residential leases the company wants to cancel, or “reject.”
UA operates seven theaters in Queens and 215 across the country, which includes 1,600 screens nationwide, said Neal Pinsker, executive vice president for theater operations at UA. The chain has closed 70 theaters throughout the nation since its financial troubles began.
United Artists has movies theaters in Astoria, Bayside, Douglaston, Ozone Park, South Ozone Park, and two in Forest Hills.
UA was purchased by telecommunications giant Anschutz Investment Group in September 2000. Anschutz oversees a wide variety of telecommunications, Internet and sports and entertainment holdings, including Qwest Communications and the LA Kings.
Anschutz declined to comment on what plans it had for the United Artist properties in Queens or whether current tenants would have the option of renegotiating their leases.
Chapter 11 bankruptcy provides a company in financial distress protection from creditors while it reorganizes its finances and develops a plan to satisfy its debts. The move usually allows a company to stay in control of its business and assets during the reorganization.
The building housing the Bayside Movie Theater has several private apartments and businesses, including the Bayside Camera Shop, the Bayside Little League, Philips Brokerage of Bayside, A Place for Posters. Bankruptcy papers filed by UA last month list several hundred different contracts and leases slated to be canceled throughout the country.
Pinsker said Monday he had no information as to the future of the company’s Bayside location or the building’s tenants.
“We’re just coming through bankruptcy now and a change in ownership,” Pinsker said. “We rejected our leases and contracts as a function of bankruptcy.”
Pinsker said the company’s petitions were being approved by the Bankruptcy Court “as we speak” and all of UA’s requests to cancel its leases should be completed by March 1.
Jacques Adrian, owner of the Bayside Camera Shop, said Friday he had no knowledge of any cancellation of his lease and had not received any paperwork on the matter from UA.
“It would be news to me,” he said. “I haven’t heard.”
Bob Reid, commissioner of the Bayside Little League, said he received the notice about canceled leases last week and has yet to get any word on the future of the building or whether or not the League could stay.
“I would guess sooner or later if they go to close the building they’ll tell us to get out,” he said.
Reid said the Bayside Little League has been occupying the storefront in the building without a lease since last fall and has been staying there under monthly agreements with UA.
In 1999 Reid and Phil Kressner, owner of A Place for Posters, said during the last renegotiation of their leases United Artist inserted a clause that allowed the company to void the contract with 120 days’ notice. Kressner could not be reached for comment as of presstime.
Civic leader Frank Skala, president of the East Bayside Homeowners Association, said last week he had not heard anything about a plan to sell the building since Elias pulled out of the deal to buy the property.
In 1999 Elias said he was backing off an agreement to redevelop the property because of community protest. Elias is known for reshaping Austin Street in Forest Hills by bringing in big name chain stores such as the Gap and the Disney Store.
Reach reporter Kathianne Boniello by e-mail at Timesledgr@aol.com or call 229-0300, Ext. 146.
