Cineworld considering bankruptcy

It has, however, said that its theatres globally will remain open for “business as usual”, continuing to welcome guests and members. 

It comes as it warned last week it was in survival talks amid a lack of blockbusters and weaker than expected sales. Currently worth less than £50m, the firm had hoped films such as the latest Bond film, Top Gun: Maverick and Thor Love And Thunder would draw audiences back in after lockdown restrictions eased. 

The world’s second-largest cinema chain reported a $708m (£598m) loss last year, and accumulated $4.8bn (£4bn) in debts while cinemas were shut. It emerged last week it had hired lawyers from Kirkland & Ellis, as well as consultants from restructuring experts AlixPartners, to advise on how to manage its soaring debts. 

A Chapter 11 filing, according to the firm, would be expected to “allow the group to access near-term liquidity and support the orderly implementation of a fully funded deleveraging transaction”. 

It added: “Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees. 

“As previously announced, any deleveraging transaction would, however, result in very significant dilution of existing equity interests in Cineworld.” 

In October 2020, the firm had to temporarily close all of its cinemas as it struggled with the pandemic-induced lack of new films - particularly being hit by the delayed release of No Time to Die, as well as Disney’s decision to release the live-action Mulan remake straight to its streaming service.