Cinemas at risk of closure as chain fails to find buyer
CINEWORLD DECLARED BANKRUPTCY LAST YEAR
TWO cinemas are at risk of closure as Cineworld continues to struggle to find a company to take on the whole business.
Hinckley and Loughborough franchises are both potentially at risk, although they are continuing to operate as normal.
There are more than 100 cinemas at risk throughout the UK and Ireland after the major cinema chain fell into administration.
The Mirror reported that last year Cineworld filed for bankruptcy in the US, citing struggles during the pandemic that left cinemas empty for months. Despite Cineworld reporting it has been approached by a number of potential buyers, so far none of them is willing to pay in cash for the whole business, which is £5 billion in debt.
Cineworld is a worldwide company, with 28,000 workers across 10 countries - and though the future of the company remains uncertain, the cinema brand is still hoping to recover from bankruptcy protection before the middle of the year.
According to The Sun, the company has received a series of “nonbinding proposals” but stressed there is yet to be a decision made.
Cineworld’s shares plunged even further after no all-cash offers were made for the business. Bosses are allegedly wanting offers for the whole group, including the US and UK, which remain the largest markets - but proposals for some theatres across central and eastern Europe and Israel have been made.
Cineworld operates 103 cinemas across the UK and Ireland. It also owns 26 theatres under the Picturehouse brand, with three more of these meant to be opening in Chester, Ealing and Epsom.
The Wall Street Journal has said that a key factor in the company falling into bankruptcy was the pandemic, which halted cinema foot traffic for months on end as the country was in lockdown. The impact of deferred rent payments, also stemming from the lockdowns, was also a factor in the administration.
A spokesman for Cineworld said: “The company has now received non-binding proposals from a number of potential transaction counterparties for some or all of the group’s business.
“The company is reviewing such proposals in conjunction with its advisers and key stakeholders and, while no decision has been made as to whether to pursue a sale transaction, and the terms of any such transaction remain uncertain, based on the proposals received to date, it is not expected that any sale transaction will provide any recovery for the holders of the company’s equity interests.”