CITRUS HEIGHTS, CA (MPG) - Construction was underway for the new Studio Movie Grill in Citrus Heights, but the financial impact of the COVID-19 pandemic has forced the company to abandon their plans for the 49,000-square-foot theater.

The 8501 Auburn Blvd. location was originally scheduled to open in summer of 2020 but was delayed by the company’s sudden loss of profits due to public health orders restricting business operations. Contractors and subcontractors filed numerous liens against the project for lack of payment last summer. The company’s inability to make those payments was entirely the result of the pandemic, said Lynne McQuaker, senior director of public relations and outreach for Studio Movie Grill. Last summer she described the impact on restaurants and theaters as “devastating.”

In October last year, Studio Movie Grill—which has 33 locations across 10 states—announced it was filing for bankruptcy in order to strengthen the business, reduce liabilities, and reposition the company. The restructuring process would allow the company to find “a sustainable path forward,” stated Studio Movie Grill Chairman Brian Schultz in the announcement posted to the company’s website on October 23, 2020.

The path forward for Studio Movie Grill (SMG) evidently does not include the Citrus Heights location. In an emailed response on January 25, 2021, McQuaker stated, “We are still in the midst of restructuring.” But she was able to confirm that “the Citrus Heights location will not be moving forward with SMG.”

Abandoning the plans for the Citrus Heights location will allow the company to focus available funds on maintaining their existing theaters, including eight that are located in California. McQuaker confirmed that the Rocklin location “will reopen as soon as mandates allow.”

Meghan Huber, economic development and communications manager for the City of Citrus Heights, said that while the City can’t comment on Studio Movie Grill and their status at the Citrus Heights location, “the shopping center continues to be a focus for the economic development team.” It’s a desirable location—situated along a popular Citrus Heights corridor close to the freeway— so Huber said, “City staff will continue to work with the property owners to usher in opportunities for new business.”