CINEWORLD is preparing to file for bankruptcy “within weeks”, putting 128 UK and Ireland cinema at risk.
The cinema chain made the decision after struggling with attendance following the coronavirus pandemic.
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The company has hired lawyers and consultants to advise on the bankruptcy process.
Cineworld has been approached for a comment.
It comes two days after Cineworld said it is assessing options to shore up its finances after it blamed a “limited” film slate for weak audience numbers in recent months.
The company, which also owns the Picturehouse chain in the UK and Regal Cinemas in the US, had pinned its hopes on releases such as Top Gun: Maverick, The Batman and Thor: Love And Thunder to aid its recovery from the heavy impact of the pandemic.
However, it told the London Stock Exchange on Wednesday: “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.”
The business, which was saddled with 4.8 billion dollars (£4 billion) of debt at the end of the last financial year, said it was considering restructuring its balance sheet to protect its future.
The London-based chain narrowly escaped bankruptcy in 2020.
But it was handed a lifeline after creditors stepped in to help.
The UK-founded company also owns cinemas under the Regal Cinema brand in the USA.
It acquired the Regal chain in 2018 for $3.6 billion.
Cineworld was founded in the UK in 1995 and is the second largest cinema chain in the world behind AMC.
It comes with a number of retailers going into administration this year following the impact of coronavirus and reduced consumer spending.
Frasers Group, which owns House of Fraser, Sports Direct and Evans Cycle, bought digital retailer Studio Retail Group earlier this year.
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