Rosario Monachino
Cineworld Group Plc is preparing to file for bankruptcy.
According to The Wall Street Journal, the company, which also owns Regal Cinemas in America, is struggling to recoup its losses from the pandemic.
Recently, it announced that, despite a gradual increase in attendance and July being their best month since pre-Covid, it admissions have dropped lower than expected due to a ‘limited film slate’.
Watch Cineworld announce the closure of several of its US branches below…
In a recent statement by a spokesperson for the company, they 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.”
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Cineworld was reportedly banking on the success of films like Top Gun: Maverick, Thor: Love and Thunder, and The Batman to help bring admission fees to pre-Covid levels.
The British cinema chain is now working with lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to provide assistance in the bankruptcy process, according to sources close to the chain.
Investors believe that their market value has dropped from £4.4billion to £50million.
Fans of the cinema chain have reacted to the news on social media.
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One person commented: “This is so sad, hope someone can save it.”
“I would say that I’m horrified and shocked by this but sadly I’m not. Cineworld has struggled since Covid. What it is, is a massive shame and very sad news for the staff,” penned someone else on Twitter.
A third person wrote: “I know Cineworld has its detractors, but one of the largest cinema chains in the world filing for bankruptcy is bad news for everyone.”
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