A HUGE cinema chain has given a major update on its future as it officially files for administration.
Cineworld has said the move will help it to “strengthen its financial position” in the UK as it emerges from Chapter 11 bankruptcy in the US.
GettyCineworld has officially filed for administration[/caption]
Shares in the London-listed company have been suspended, but it stressed that the move will not impact operations and that its cinemas will continue to remain open as usual.
The chain currently has 128 branches across the UK and Ireland.
A spokesman for the chain said: “Cineworld continues to operate its global business and cinemas as usual without interruption and this has not and will not be affected by the entry of Cineworld Group plc into administration on July 31, 2023.”
When a company enters administration in the UK, all control is passed to an appointed administrator – who has to be a licensed insolvency practitioner.
Their goal is to leverage the company’s assets and business to repay creditors.
It comes after the chain filed for Chapter 11 bankruptcy in the US last year due to giant debts and low footfall.
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 looked to be at risk.
But in April it said would raise $2.26billion (£1.8 billion) in new funding in order to remain operational.
And in June Cineworld said it was preparing to file for administration.
The group also scrapped plans to sell its businesses outside the UK, US and Ireland after potential bidders failed to meet the value desired by its lenders.
The firm operates 103 cinemas under the Cineworld brand across the UK and the Republic of Ireland:
Aberdeen – Queens LinksAberdeen – Union SquareAldershotAshfordAshton-under-LyneBarnsleyBasildonBedfordBelfastBirmingham – Broad StreetBirmingham – NECBoldon Tyne and WearBoltonBracknellBradfordBraintreeBrightonBristolBroughtonBurton upon TrentBury St EdmundsCardiffCastlefordCheltenhamChesterfieldChichesterCrawleyDalton ParkDidcotDidsburyDoverDundeeEastbourne at The BeaconEdinburghElyFalkirkGlasgow – ParkheadGlasgow – Renfrew StreetGlasgow – SilverburnGloucester QuaysHarlow – Harvey CentreHarlow – QueensgateHaverhillHemel HempsteadHigh WycombeHinckleyHullHuntingdonIpswichLeeds – White RoseLeighLlandudnoLondon – BexleyheathLondon – EnfieldLondon – FelthamLondon – HounslowLondon – IlfordLondon – Leicester SquareLondon – South RuislipLondon – The O2 GreenwichLondon – WandsworthLondon – WembleyLondon – West India QuayLondon – Wood GreenLoughboroughLutonMiddlesbroughMilton KeynesNewcastle upon TyneNewport – Friars WalkNewport – Isle of WightNewport – Spytty ParkNorthamptonNottinghamPlymouthPooleRochesterRugbyRuncornRushden LakesSheffieldShrewsburySolihullSpekeStevenageSt HelensSt NeotsStoke-on-TrentSwindon – Regent CircusSwindon – Shaw RidgeTelfordWakefieldWarringtonWatfordWeston-super-MareWeymouthWhiteleyWitneyWolverhamptonYateYeovilYorkDublin
It also runs a further 26 cinemas under the Picturehouse brand:
AshfordBath – Little Theatre CinemaBrighton – Duke of York’sBrighton – Duke’s at KomediaCambridge – ArtsEdinburgh – CameoExeterHenley-on-Thames – RegalLiverpool – FactLondon – BromleyLondon – ClaphamLondon – Crouch EndLondon – East DulwichLondon – Finsbury ParkLondon – Fulham RoadLondon – GreenwichLondon – HackeyLondon – Picturehouse CentralLondon – RitzyLondon – StratfordLondon – The GateLondon – West NorwoodNorwich – Cinema CityOxford – PhoenixSouthampton – Harbour LightsYork – City Screen
The company’s shares have plunged almost 99% over the past five years, as it was hit particularly hard by the pandemic, which led to 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.
The company employs 28,000 workers globally, with operations in 10 countries.
It runs almost 130 sites in the UK and the Republic of Ireland and roughly 750 globally.
It comes after cinema chain Odeon closed five of its branches in June.
While Empire cinema closed multiple sites after falling into administration last month.
The company made its decision following “a thorough assessment of all available options”.
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