Cineworld confirms it has bankruptcy on its brains amid debt
No matter how many enthusiastic spectators flocked to Top Gun: Maverick and Thor: Love and Thunder this summer is another day of bad news for the cinematic experience: Cineworld has confirmed that it is considering filing for bankruptcy. Since the pre-pandemic cinema massacre that saw Cineworld briefly shut down all Regal locations in the US, the company continues to ardently shoulder $5 billion in debt…compared to a comparable market value of $69 million.
By The BBCCineworld is currently considering several options when it comes to restructuring operations—one, confirmed by the company, is a U.S. Chapter 11 bankruptcy filing. This path would allow Cineworld to continue operating a business while finalizing relations with its creditors but is worrying for the 28,000 people the company employs globally.
In a statement obtained by The BBCthe company outlined its restructuring plans, sharing, “Cineworld would expect to maintain operations in the normal course until and after any filings and ultimately continue operations for the longer term without significant impact on its employees.”
Things started to look unsettling on Friday, when The Wall Street Journal published an article stating that Cineworld planned to file for bankruptcy “in a few weeks”. It’s no coincidence that the company’s shares fell 60% on the same day. Cineworld’s own value isn’t the only low number that bodes ill for movie theaters around the world; although recent hits like this Superior gun sequel made a record debut, box office revenues were still down 32% this year from 2019’s pre-pandemic numbers.
Cineworld is the second largest cinema chain in the world and owns a company based in the United States Regal Cinemas. In a particularly memorable moment “look how they slaughtered my boyMoments, Cineworld close everything from its Regal Cinemas locations on October 8, 2020. Thankfully, many were able to reopen, but as the mere hint of a filing in Chapter 11 indicates, it is difficult to account for the debts inherent in the lack of bodies in theater seats. Clearly IIt’s Style Time Nicole Kidman wide-eyed moviegoers magic to unionize. It doesn’t matter if you plan to see Barbie Where Oppenheimer in theaters July 21, 2023 – if we don’t keep all of our local theaters closed, everyone will watch the premiere of their choice on streaming.