Cineworld movie chain files for bankruptcy

3 weeks ago 71

New York CNN Business  — 

Cineworld Group — the world’s 2nd largest movie theatre concatenation and proprietor of Regal Cinemas — said Wednesday that it has filed for Chapter 11 bankruptcy protection.

The British company, which owns much than 500 movie theaters crossed the United States, said that it commenced Chapter 11 proceedings successful the United States Bankruptcy Court for the Southern District of Texas to shed institution debt. It besides expects the enactment volition “strengthen its equilibrium expanse and supply the fiscal spot and flexibility to accelerate, and capitalize on, Cineworld’s strategy successful the cinema industry.”

The institution added that it has entree to astir $2 cardinal successful financing from existing lenders to support operating. Cineworld besides said successful the filing that it “expects to run its planetary concern and cinemas arsenic accustomed passim this process.”

The company warned precocious past month that a voluntary Chapter 11 filing was 1 of the options it was reviewing to trim its debt.

“We person an unthinkable squad crossed Cineworld laser focused connected evolving our concern to thrive during the comeback of the cinema industry,” Mooky Greidinger, Cineworld’s CEO, said successful a connection connected Wednesday. “The pandemic was an incredibly hard clip for our business, with the enforced closure of cinemas and immense disruption to movie schedules that has led america to this point.”

Greidinger added that the bankruptcy filing is “part of our ongoing efforts to fortify our fiscal presumption and is successful pursuit of a de-leveraging that volition make a much resilient superior operation and effectual business.”

“This volition let america to proceed to execute our strategy to reimagine the astir immersive cinema experiences for our guests done the latest and astir cutting-edge surface formats and enhancements to our flagship theatres,” helium added. “Our extremity remains to further accelerate our strategy truthful we tin turn our presumption arsenic the ‘Best Place to Watch a Movie.’”

Like galore theaters, Cineworld has struggled during the pandemic, which devastated the manufacture and is inactive impacting exhibition. The planetary wellness situation caused theaters astir the satellite to adjacent and the company lost $2.7 cardinal successful 2020 and different $566 cardinal successful 2021.

The economics person improved for theaters, but a instrumentality to mean is inactive acold off.

The home container bureau rebounded this summertime acknowledgment to large hits similar “Top Gun: Maverick” and “Jurassic Park: Dominion” arsenic good arsenic smaller hits similar “Elvis” and “The Black Phone.” Yet, movie attendance has dried up successful caller weeks amid a dearth of caller films and proviso concatenation issues hitting Hollywood and galore features going consecutive to streaming.

— Mark Thompson and Anna Cooban contributed reporting.

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