Cinemex filed for bankruptcy in the United States and the news once again brought attention to Germán Larrea Mota-Velasco, also known as the “Copper King”, one of the most powerful and discreet businessmen. Owner of Grupo México, the country’s largest mining company and one of the world’s main copper producers, his fortune has been under financial scrutiny, yet his personal life remains a mystery.
READ ALSO. CMX Cinemas files for bankruptcy! Will it close its theaters?
Larrea heads an empire that not only spans mining, but also railway transport through Ferromex and the entertainment sector with Cinemex and CMX Cinemas. According to Forbes estimates, his fortune reaches 26.6 billion dollars, although some sources, such as Bloomberg, suggest that his mother, Sara Mota de Larrea, holds even more wealth as the majority shareholder of Grupo México.
Larrea studied Business Administration at Universidad Anáhuac and is known for avoiding the spotlight: he does not give interviews, does not participate in public events, and little is known about his personal life, except for his passion for horses and wine, a hobby inherited from his father, Jorge Larrea Ortega.
In the business world, he attempted to acquire Citibanamex, but the deal did not materialize. His influence in the financial and mining sectors is undeniable, but not all of his ventures have been successful, as is the case with his cinema business in the United States.
Why are Cinemex USA and CMX Cinemas bankrupt?
Cinemex Holdings USA, the U.S. branch of the Mexican chain Cinemex, filed for bankruptcy for the second time in less than five years. The Miami-based company failed to recover from the impact that the Covid-19 pandemic had on the cinema industry, compounded by the rise of streaming platforms.
According to documents filed with the U.S. Bankruptcy Court for the Southern District of Florida, CMX Cinemas —operator of Cinemex USA— faces estimated liabilities of \$50,000, while its assets are calculated to be between \$100,000 and \$500,000. Although these figures may seem small, they represent only the tip of the iceberg in the company’s ongoing crisis.
Bloomberg News reported that, given the fragile financial situation, Cinemex USA may be forced to close some of its 28 theaters, which include luxury cinemas with table service and IMAX screens, or sell assets to avoid a more severe collapse.
The first time Cinemex USA filed for bankruptcy, during the pandemic, its debt exceeded \$100 million, revealing deep structural problems within the subsidiary.
How did Grupo México and Germán Larrea enter the movie theater business in the U.S.?
The story of Cinemex and its venture into the U.S. market began in 2009 when Grupo México, owned by Germán Larrea, acquired the Cinemex chain in Mexico. Eight years later, in 2016, the company decided to expand its operations to the United States under the CMX Cinemas brand.
CMX positioned itself as a premium alternative, offering theaters with in-seat dining service, IMAX screens, and a focus on delivering a luxury moviegoing experience. With 28 locations, 311 screens, and around 1,400 employees, the company aimed to replicate the success Cinemex enjoyed in Mexico.
However, the pandemic and the changing entertainment consumption habits, accelerated by streaming, severely impacted CMX Cinemas, which joined the growing list of U.S. theater chains facing financial troubles, such as Cineworld (owner of Regal) and AMC, the latter avoiding bankruptcy after a debt restructuring.
What is the future for CMX Cinemas and Cinemex USA?
Currently, Cinemex USA is undergoing legal proceedings under Subchapter V of the U.S. Bankruptcy Code. The objective is clear: reduce financial obligations, renegotiate leases, and restructure the business to ensure its long-term viability.
The company has pledged to maintain cinema operations without interruptions and to fulfill payments to suppliers and employee wages. It also confirmed that membership programs such as CMX Rewards and CMX Passport will remain valid.
Nevertheless, the outlook is uncertain. Low theater attendance in the U.S., which remains below pre-pandemic levels, and fierce competition from streaming platforms cast doubt on the profitability of the cinema business, even for giants like Cinemex and Grupo México.
