A major update in the future of the world’s second biggest cinema group, Cineworld, has been revealed after it filed for bankruptcy.
The firm has said it expects to come out of its bankruptcy protection in July after it received backing from lenders.
And cinemagoers will be relieved to learn it has said it will continue to run its venues ‘without interruption’ and ‘as usual’.
The second-largest cinema chain in the world employs 28,000 workers across the globe, where it operates in 10 countries
How big is Cineworld?
Cineworld is the world’s second largest cinema chain, having expanded rapidly before the Covid pandemic hit.
The group has more than 9,000 screens at 751 sites in 10 different countries.
Cineworld’s main brands are Cineworld and Picturehouse in the United Kingdom and Ireland, Cinema City in Eastern and Central Europe, Yes Planet in Israel, and Regal Cinemas in the United States.
What is happening to Cineworld?
Cineworld released a major update on its future today, confirming it expects to exit bankruptcy.
In a statement today, it said: ‘The group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.’
Cineworld said it was moving forward with a plan to restructure its pile of debt, which currently stands at approximately £4billion.
That comes after the world’s second-largest cinema chain filed for chapter 11 bankruptcy in the US last year due to giant debts, the after effects of the pandemic and low footfall to its venues.
A chapter 11 bankruptcy case refers to when the debtor remains in possession of the business and may continue to operate as normal while it reorganises its debts and assets. It can even, with court approval, borrow more money.
Initially Cineworld, which has 129 cinemas in the UK and Ireland, looked to be at risk after it filed for the bankruptcy in the US.
However, since then it has announced it would raise £1.8billion in new funding to remain in operation.
And it has even revealed plans to expand, with the firm saying it plans to open three more of its Picturehouse venues in Chester, Ealing and Epsom.
Cineworld shares tanked after soaring in the years before the pandemic
Why has Cineworld been in trouble?
Over the past five years, Cineworld’s share price has tumbled by 99.6 per cent, after it was hammered by the pandemic and forced to close cinema doors just after an aggressive expansion.
The increase in people using subscription streaming services such as Netflix and Disney+ has also hindered its business.
Cineworld employs 28,000 workers across the globe, where it operates in 10 countries.
