Regal Cinemas owner launches Chapter 11 bankruptcy proceedings
Regal Cinemas’ parent company, Cineworld Group, is filing for bankruptcy in the United States Bankruptcy Court for the Southern District of Texas.
Regal Cinemas owner Cineworld Group has just filed for Chapter 11 bankruptcy.
The London-based British entertainment conglomerate filed for bankruptcy on September 7, 2022 in the United States Bankruptcy Court for the Southern District of Texas, according to The Hollywood Reporter. “As part of the Chapter 11 cases, Cineworld, with the expected support of its secured lenders, will seek to implement a deleveraging operation that will significantly reduce the group’s debt, strengthen its balance sheet and provide the necessary financial strength and flexibility. to accelerate, and capitalize on Cineworld’s strategy in the film industry,” Cineworld said in a press release. “The Group’s Chapter 11 companies are entering Chapter 11 business with commitments for a debtor-in-possession financing facility of approximately $1.94 billion from existing lenders, which will help ensure that the operations of Cineworld will continue in the normal course as Cineworld implements its reorganization.”
Cinema chains have been going through a turbulent time lately, with restrictions and closures related to the COVID-19 pandemic causing considerable financial and logistical headaches for owners. Several chains (including Cineworld) saw their stock prices plummet in October 2020 after Regal Cinemas announced the closure of all of its cinemas in the US and UK. That said, many theater owners saw their stock prices start to recover in January 2021 after the strong opening weekend of Wonder Woman 1984and Regal Cinemas has publicly announced plans to reopen its theaters by March 2022.
Cinema chains Rocky Road towards post-pandemic recovery
The chain’s theaters were up and running again in May 2021, when Regal Cinemas made headlines for lifting its mask requirements for vaccinated moviegoers. The other two largest U.S. theater chains, AMC and Cinemark, have also made mask-wearing optional for patrons (but not staff), in accordance with updated CDC guidelines. However, other COVID-19 related safety measures, including social distancing seating, limited screening capabilities and enhanced theater cleaning techniques, remained in place.
Despite the challenges facing movie theater chains, 2022 is shaping up to be a bumper year for the U.S. film industry. The North American market is poised to overthrow China as the world’s top box office market, recording $3.7 billion in total revenue in the first half, compared to China’s $2.6 billion. . Part of the surge in the North American market is undoubtedly due to the performance of high-profile releases such as The Batman, Doctor Strange in the Multiverse of Madness and Top Gun: Maverick. This is particularly true of Top Gun: Maverickwhich recently became the fifth highest-grossing film of all time at the domestic box office.