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Fortress Investment Group has seized control of British art house cinema chain Curzon, after pursuing a legal campaign to auction off the assets of a troubled US real estate billionaire.
The private equity group snapped up the cinema chain for $5mn at an auction last week, according to a person familiar with the matter.
Announcing the deal on Tuesday, Fortress said it included Curzon’s 16 cinemas across the UK as well as film distributor Curzon Film and the Curzon Home Cinema streaming service.
Fortress had lent Charles Cohen, chief executive of Curzon-owner Cohen Media Group, $534mn backed by properties including Curzon which he bought in 2019. However, the group sued Cohen for a default earlier this year.
A New York Supreme Court judge in August approved proceeding with a foreclosure auction against properties owned by Cohen, to recoup part of the value of the loans. Cohen had disputed the claim, asserting that a restructuring agreement had been reached with Fortress. However, the court rejected Cohen’s motion to postpone the auction, according to the judgment.
The auction also included assets such as the companies that control the Design Center of the Americas, and Le Méridien hotel in Dania Beach in Florida, both of which were also acquired by Fortress.
The person familiar with the deal said Fortress put in a low bid for Curzon to maximise the amount it can also pursue from Cohen as part of the loan payment.
Curzon declined to comment on the value of the deal or legal proceedings. Cohen Media Group did not immediately respond to a request for a comment.
Fortress, which is majority-owned by Abu Dhabi’s Mubadala investment arm and has about $48bn under management, has a UK portfolio which also includes Majestic Wine, Poundstretcher and Punch Pubs.
The deal will secure positions for Curzon’s 350-plus workforce, Fortress said in its statement.
“Curzon is an iconic film company, with global recognition for its long legacy of releasing and connecting independent and critically acclaimed films to UK audiences,” said Allison Swayze, managing director at Fortress. “Curzon has exciting near-term plans which include expanding its cinema footprint, and delivering awards and release plans for an exciting slate of films.”
The Fortress deal comes as the UK’s cinema industry still faces headwinds relating to the pandemic. Despite megahits such as Barbie, Oppenheimer and Avatar: The Way of Water, the country’s box office revenues in 2023 stood at £978.5mn — a fifth lower than the 2019 level, according to the UK Cinema Association.
Many cinema chains have come under pressure. In September Cineworld creditors and a judge approved a controversial restructuring plan to slash or cancel rents in a bid to save the cash-strapped group’s UK business, which entered administration last year.
Curzon, founded in 1934 and known for introducing international films to UK audiences, has been expanding its cinema footprint as well as integrating a cinema business with a streaming platform.
Since its launch in 2010, the streaming service is now available across multiple platforms and devices with 6.5mn subscribers. It has also done a deal with Netflix, allowing the chain to show a selection of the streaming group’s films on its screens as they are released.
Curzon started its distribution business in 2006 after its acquisition of art house label Artificial Eye, specialising in independent, foreign-language and art house films.
Additional reporting by Robert Smith