One Of The Largest Theater Chains Is In Serious Danger
Cineworld filed for the British version of bankruptcy
Despite Tom Cruise’s best efforts, movie theaters are still struggling. Cineworld, the second-largest theater chain in the world, just suspended its listing on the London Stock Exchange as part of a plan to revamp its business holdings and hopefully reduce its considerable debt.
According to Deadline, Cineworld, owner of U.S. theater chain Regal, recently filed for administration—essentially the British version of filing for bankruptcy—in the UK following a similar filing in the US last September.
Cineworld released a statement saying that in addition to removing the company from active stock trading. in the UK, the company has also secured a new $250 million credit. facility to help finance its restructuring.
Cineworld suspended its listing on the London Stock Exchange and filed the British version of bankruptcy
Cineworld’s proposed plan to revamp its business holdings is expected to generate additional funds to help the ailing company get back on its feet. The plan involves releasing close to $4.53 billion of the company’s debt while selling off some of its rights in order to gain another $800 million and culminates with the acquisition of $1.46 billion in additional debt financing.
“The Restructuring, when implemented by way of an administration process, will transform the Group’s balance sheet and provide it with significant additional liquidity to fund its long-term strategy,” read the statement.
Despite Cineworld’s convoluted efforts at financial restructuring, the company promises that its businesses and cinemas around the world will continue to operate without interruption.
The statement assured moviegoers that neither Cineworld Group plc’s bankruptcy and administration filings nor the suspension of its name from the London Stock Exchange would affect their ability to see films in any of its different locations, such as the numerous Regal theater chains that operate across the US.
Cineworld assured that there cinemas around the world would continue to operate without interruption
Cineworld is just one of several theater chains suffering in a post-pandemic landscape. Many of the viewers who were forced during the COVID-19 epidemic to watch first-run films from the comfort of their couches and beds rather than in a crowded theater have decided that they prefer the at-home viewing experience and have failed to return to theaters now that they’re open again.
Hollywood Isn’t Helping Theater Chains Like Cineworld
Hollywood isn’t helping by maintaining a shortened theatrical window for most of their films, prompting many would-be theatergoers just to wait a month—or less—and watch new films once they hit streaming rather than making the trek to a theater.
Even Cineworld’s biggest competitor and the number-one theater chain in the world, AMC, isn’t immune to post-pandemic financial woes. The famous theater chain has been forced to try several different gimmicks, including the ill-fated Sightline program, in an attempt to lure moviegoers off of their couches and back to the theater.
Other theater chains have tried everything from reclining seats to serving beer during the movie to try and stay afloat in what some see as a dying business.
It’s too early to count Cineworld out just yet, though. Earlier this month, the company appointed former Cineoplis executive Eduardo Acuna as its new CEO. With any luck, the combination of new blood at the helm and that recently acquired $250 million credit line will be enough to help Cineworld turn its luck around.
