Oxford a victim of numbers

Norman Nahas says he’s not in the movie business and therefore has no plans to maintain Halifax’s Oxford theatre as a working cinema. That shouldn’t surprise anyone, he says, as the Oxford has been under scrutiny ever since Cineplex Cinemas acquired Empire Theatres in 2013.

Cineplex’s stock has been under pressure ever since it reported second quarter earnings in early August of $1.4 million (two cents per share) on total revenue of $364 million, compared to a profit of $7.2 million (12 cents per share) on revenue of $338 million in the same quarter the prior year.

But Cineplex CEO Ellis Jacob explained the revenue growth was primarily due to higher amusement revenue rather than movie box office receipts.

The cinema company’s box office revenue in the second quarter was $170.7 million, compared to $166.7 million in the same quarter last year, but movie attendance declined to 16.5 million people, compared with 16.9 million moviegoers during the quarter a year ago.

Simply put, operating a singlescreen theatre is less profitable than running a multiplex theatre with numerous screens. Norman Nahas, who along with his brothers Andrew and Nicholas are partners in the family-owned development firm Nanco Group, announced Thursday his family would be acquiring the Quinpool Road landmark.

“It has been a lot of time in the works, but here we are,” Norman, a Nanco vice-president, said. “We’ve been on the go about four months or so now.” The Nahas brothers, who are also owners of King of Donair, own the building next to the theatre. Norman said although the Oxford building was not officially put up for sale, he made an inquiry about the theatre building; Cineplex replied and that is when negotiations began.

The purchase price has not yet been revealed but Nahas says the fact that the Oxford Theatre is a landmark for so many people in Halifax added to the value of the property.

Nahas said he would prefer to maintain the integrity of the structure, although detailed plans for the redevelopment of the property have not been finalized. Whether the project will also include the building he already owns next door has not yet been determined, but he said the project will be mixed-use retail and residential.

News that the theatre, which had become a movie-going institution for many, would be closing its doors on Sept. 13 — some might say, ironically following a final showing of “Titanic” — struck a chord with many Halifax residents Thursday who lamented on social media about the loss of another one of Halifax’s favourite buildings.

Nahas says he is well aware of the ownership many people feel for the 80-year-old movie theatre. He himself grew up on Pepperell Street and would regularly go to movies at the Oxford.

Any redevelopment of the property will adhere to the regional municipality’s Centre Plan, he said, which would likely restrict the height of the building to no more than six storeys.