Major cinema chain with 100 branches ‘to close dozens of sites’ in major blow to high street

A MAJOR cinema chain is in talks to close dozens of cinemas under new plans to shore up its finances.

Cineworld is contemplating shutting down around a quarter of its approximately 100 UK multiplexes, Sky News reports.

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The chain is also seeking to renegotiate rent agreements for about 50 of its locations, with the remaining 25 cinemas left unaffected by the restructuring plans.

Sources indicate that these proposals will likely be formally presented to creditors, including landlords, in the coming weeks.

The restructuring is expected to be carried out through a specific insolvency mechanism rather than a company voluntary arrangement (CVA).

A Cineworld spokesperson, in response to inquiries, stated: "We continue to review our options, but we don't comment on rumours and speculation."

Earlier this month, Cineworld was said to be weighing up its options and considering a major restructuring, which could include closures.

Sky News reported the chain was working with restructuring adviser AlixPartners on a plan that could lead to a sale or restructuring.

According to the broadcaster, such a move could "put an unspecified number of its UK cinemas at risk of closure".

A restructuring plan allows a company to rework its balance sheet, restructuring debts and releasing cash into the business.

At the time of the report, a spokesperson for Cineworld said it was "continually reviewing" its UK operations "like many businesses".

It came after Cineworld emerged from Chapter 11 bankruptcy in the US late last year.

Filing for a Chapter 11 bankruptcy means a company intends to reorganise its debts and assets while remaining in business.

At the time, the future of the chain's 129 UK and Irish cinemas appeared to be in danger.

The company's shares plunged almost 99% in the five years to 2023, as it was hit particularly hard by the pandemic and the enforced closure of its cinema sites.

The business has posted significant losses since and has also come under pressure from platforms offering streaming services, such as Netflix and Amazon Prime.

Shortly after, Cineworld's UK arm collapsed into administration on July 31.

The cinema chain was delisted from the London Stock Exchange a day later.

When a company enters administration in the UK, all control is passed to an appointed administrator, who must be a licensed insolvency practitioner.

Since then appointed administrators at Alix Partners have been assessing plans for a major restructure.

As of July 2024, the cinema chain operates out of 100 Cineworld branded screens across the UK and Ireland as well as a further 28 under the Picturehouse brand.

For now, the chain's screens remain fully operational and open as usual.