The Cineworld Group, the second largest cinema group in the world, is reportedly preparing to file for bankruptcy.
The Wall Street Journal reports the British-based firm is considering the move after struggles to rebuild attendance following the Covid pandemic.
READ MORE: Iconic Glasgow pub that hosted Billy Connolly celebrates oldest bar status
Cineworld, which also operates Regal Cinemas in the United States, has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process.
It comes after Cineworld warned audience numbers have been weaker than expected and predicted they will stay low until November due to “limited” film releases.
READ MORE: Glasgow thug caught on loudspeaker by police threatening ex over the phone
In a statement the firm said: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”
Cineworld said it will continue with cost-saving plans but will also look at new options to improve its financial position.
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel