Cineworld, the prominent cinema chain, is poised to announce significant changes this Friday, including the closure of several cinema sites and the loss of hundreds of jobs as part of its ongoing restructuring efforts. These developments follow preliminary discussions with some of the UK’s largest commercial landlords, such as Landsec and Legal & General.
Approximately six Cineworld cinemas are slated for immediate closure, with doors shutting permanently later this summer. The exact number of job losses remains uncertain, but sources indicate that it will likely reach into the hundreds.
The cinema chain, which currently operates over 100 locations in Britain, including the Picturehouse chain, has been under financial strain. After acquiring chains like Regal in the US in 2018 and the British company of the same name in 2014 under the leadership of the Greidinger family, Cineworld’s multi-billion-dollar debt led it to seek Chapter 11 bankruptcy protection in 2022.
Last year, Cineworld was delisted from the London Stock Exchange after its share price plummeted, driven by concerns over its financial viability. A restructuring deal was arranged whereby billions of dollars of debt were converted into shares, supplemented by a significant injection of new capital from a consortium of hedge funds and other investors.
With its emergence from bankruptcy, Cineworld has restructured its leadership, appointing Eduardo Acuna, formerly of Mexican cinema chain Cinepolis, as its new chief executive. The company is now focusing on stabilizing its operations, with potential interest from other cinema operators to take over some of the vacated sites.
This move is part of a broader trend within the cinema industry, which has been struggling with shifting consumer habits and the ongoing impacts of the COVID-19 pandemic. As Cineworld closes doors on some of its locations, the future landscape of cinema in Britain and beyond continues to evolve.
Further details on the closures and the restructuring plan are expected to be disclosed by Cineworld in their announcement on Friday.
