Cineworld, the owner of Regal Cinemas, is $4.8 billion in debt.
Not the Cinemas too!
As a result of the post-pandemic return to theaters not turning out to be as profitable as anticipated, Cineworld, the owner of Regal Cinemas, is prepared to declare bankruptcy within the next few weeks.
The London-based Cineworld, which has a debt of $4.8 billion, is anticipated to declare bankruptcy in both the US and the UK, according to The Wall Street Journal. It runs more than 9,000 screens in 751 sites around the globe, including Regal Cinemas in the United States, Cinema City in Europe, and Yes Planet in Israel, as well as Picturehouse and Cineworld theaters in the United Kingdom and Ireland. It is the world’s second-largest theater chain, trailing only AMC, which has survived post-pandemic difficulties in part because it has become a meme stock.
The corporation supposedly relied on popular movies like The Batman, Top Gun: Maverick, and Thor: Love and Thunder to increase movie ticket sales, but the current figures are below expectations. In addition, Cineworld noted that there just aren’t enough movies set for release in the near future, so a change in revenues isn’t anticipated until the end of 2022.
Is it time to say Goodbye?
“Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations,” Cineworld said in a statement earlier this week.
“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”
To help with its bankruptcy case, the business, formally known as Cineworld Group Plc, is currently in contact with advisers from AlixPartners and attorneys from Kirkland & Ellis LLP. In 2020, at the height of COVID-19, it also declared bankruptcy but was spared by a lifeline from creditors.
When will we see you again?