Regal Cinemas owner Cineworld plans to file for bankruptcy, but ‘status quo’: reports
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Cineworld, owner of major movie theater chain Regal Cinemas, is on the verge of bankruptcy, according to multiple reports.
The London-based parent company has confirmed to BBC News that it is considering bankruptcy and is asking lawyers at Kirkland & Ellis LLP and consultants at AlixPartners for advice on next steps, according to The Wall Street Journal.
Cineworld has amassed $4.8 billion in debt, according to WSJ, and it operates more than 751 locations worldwide. Its U.S. subsidiary, Regal, currently has 505 theaters in 42 states, plus American Samoa, the District of Columbia, Guam and Saipan in April, according to the company’s website.
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The news comes nearly two years after Regal and other theaters were forced to temporarily close their theaters in October 2020 amid the COVID-19 pandemic.
Cineworld said ticket sales were lower than expected and a dearth of blockbuster movies this fall is also prompting the move, according to CNN Business, which received a statement from the company that operations would still be “as usual” for its Regal sites. .
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“Cineworld would expect to maintain operations in the ordinary course until and after any filings and ultimately continue operations for the longer term without significant impact to its employees,” the statement read.
Spokespersons for Cineworld and Regal did not immediately respond to PEOPLE’s requests for comment.
Competitor AMC Theaters was similarly affected by world events, but individual investors helped the company raise more than $2.2 billion in equity, WSJ reported. Nevertheless, AMC shares also fell after news of Regal made headlines.