Cineworld has published the full list of cinemas in the UK it will close this summer as it tries to save the chain. Earlier this week it was revealed that the group was planning to shut some UK cinemas in its latest restructuring.
The cinema chain, which currently runs around 100 sites across the country, is closing some locations as part of a formal restructuring plan.
Sky News reported that the group, which was taken private last year, will also seek renegotiated rents on around 50 other cinemas. The group, which also runs the Picturehouse chain, is among cinema firms to have been knocked by the growth of streaming services, delays to releases following actor and writer strikes, and the increased cost-of-living for customers.
Six sites Cineworld is set to close have been confirmed, as part of its major restructuring plans. It has been reported locations which will lose their cinemas “immediately”.
They are said to be Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon Circus. More closures are expected this summer. A spokesman told the Mirror: “We are implementing a restructuring plan to provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.”
The number of potential job losses is not yet clear but sources say it could be at “least in the hundreds”.
Sky reported that the restructuring proposals were expected to be formally outlined to creditors including landlords in the coming weeks. It is understood that financial services firm AlixPartners is acting as an adviser during the process.
The group was listed on the London Stock Exchange until last year, when it was taken over by investors and hedge funds after it had been hamstrung by its multibillion-pound debt pile. The investors exchanged billions of pounds worth of debt for equity in the business, after the group also filed for bankruptcy protection in the US.
Last year Cineworld said new chief executive Eduardo Acuna would work alongside new chairman Eric Foss as part of an overhauled management team hired by lenders of the group. Cineworld filed for Chapter 11 bankruptcy in the US after being weighed down by its mammoth debts and weaker-than-hoped audience numbers.
It pressed ahead with plans to restructure its roughly five billion US dollars (£3.8 billion) debt pile to allow it to exit bankruptcy. Cineworld’s UK operations were placed into administration last year as part of its restructuring.
But it stressed the move would not affect the British operations for the holding company, with cinemas remaining open as usual. The group also owns the Picturehouse brand.
Cineworld Group plc, one of the largest cinema chains in the world, was founded by Steve Wiener, a former Warner Bros. executive, in 1995. The first Cineworld cinema opened in Stevenage, UK. The group expanded rapidly and went public in 2007, listing on the London Stock Exchange. This move aimed to raise capital for further expansion and pay down debt.
In 2012, Cineworld acquired Picturehouse, a chain of boutique cinemas in the UK, known for its art-house and independent film screenings. Then in 2014, Cineworld merged with Cinema City International, a leading cinema operator in Central and Eastern Europe and Israel, forming one of the largest cinema groups in Europe.
In 2018, the company made a significant move by acquiring Regal Entertainment Group, the second-largest cinema chain in the United States. This acquisition positioned Cineworld as a global leader in the cinema industry, significantly increasing its market presence.
The COVID-19 pandemic severely impacted the cinema industry, with widespread closures and a significant drop in revenue. Cineworld faced financial difficulties and took measures such as temporarily closing all its cinemas in the UK and the US in October 2020.
Despite the challenges, Cineworld began reopening its cinemas as vaccination rates increased and moviegoers returned. The company also renegotiated terms with creditors and sought additional funding to stabilize its finances.
In 2022, Cineworld faced continued financial pressures and announced it was considering options to restructure its debt. The company also explored potential mergers or acquisitions to strengthen its position. A year later Cineworld filed for Chapter 11 bankruptcy in the United States as part of its restructuring efforts.
The move aimed to reduce debt and emerge stronger post-pandemic. The company continued to operate its cinemas during the restructuring process.
