Cineplex names Bill Walker as new chief executive, launches strategic review

has named a new leader as the cinema operator embarks on a strategic review that could end with the business sold. The Toronto-based company said Wednesday that Bill Walker, who was chief executive at Canada’s second-largest theatre chain Landmark Cinemas during its 2017 sale to Belgian firm Kinepolis Group, would take Cineplex’s helm immediately. Walker succeeds Ellis Jacob, Cineplex’s longtime chief executive who is retiring.

The leadership change came as the business also announced it has launched a strategic review. The options to be considered during the review include a possible sale of the business though Cineplex warned it can’t promise the process will result in a transaction, agreement or any other specific outcomes. Cineplex board chair Phyllis Yaffe said in a statement that the appointment of Walker and the review will provide the company with leadership continuity and strategic flexibility to ensure shareholders benefit from the company’s full potential.

Yaffe said the board believes the company’s current market valuation may not fully reflect the strength of its business and long-term prospects. Jacob is expected to serve as special adviser until the end of the year, working with the board, management team and the company’s advisers in connection with the strategic review. The announcements Wednesday could mark the start of a new chapter for Cineplex, which has been plagued with challenges over the last few years.

As streamers cut into theatre revenues and Cineplex leaned more on entertainment venues like the RecRoom and Junxion and announced in December 2019 that it would sell itself to U.K. firm Cineworld PLC for $2.8 billion. The deal fell apart, when the COVID-19 pandemic temporarily closed theatres, and Cineworld walked away, accusing Cineplex of breaching their agreement when the crisis hit and it had to take unprecedented steps to stabilize the business.

Cineplex chalked its suitor’s complaints up as “nothing more than a case of buyer’s remorse” and sued for more than $2.18 billion in damages. Cineworld filed a counter claim, but lost both the original case and an appeal. Cineplex has said it’s unlikely it will be able to recover the $1.24 billion in damages the court awarded it.

Ever since the Cineworld deal fell apart, Cineplex has been rumoured to be up for sale. Bloomberg reported earlier this year that Cinep… has named former Landmark Cinemas CEO Bill Walker as its new chief executive and announced plans for a review of strategic alternatives.