Cineworld has closed about 23 of its theaters since filing bankruptcy last year and plans to shut down more, citing a legal adviser on Wednesday.

Bloomberg News reported that the closures so far represent about 5% of the company’s theater count in August, which added the cinema chain now has 478 sites.

This news came after Cineworld stated it would focus on getting the group acquired as a whole rather than selling its individual assets.

The company’s finances have been challenged due to the aggressive expansion, including its move into the US. That is why the company has warned that any restructuring or sale will further result in significant dilution of equity interests with no guarantee of recovery for existing investors.

Separately, Bloomberg reported Cineworld might strike a new in-theater advertising deal with a company other than existing partner National CineMedia Inc. in the near future, citing the cinema operator’s bankruptcy lawyer Josh Sussberg.

Cineworld was the second-largest cinema group before it filed for U.S. bankruptcy protection in September last year. This move is made to try to mitigate its debt and strengthen its accounting and balance sheet as the industry navigates a bumpy road to recovery after COVID-related restrictions and shutdowns battered the sector.

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