A HUGE cinema chain has given a major update on its future after filing for bankruptcy.
Troubled cinema chain Cineworld has said it will raise $2.26billion (£1.8 billion) in new funding as part of a plan to exit bankruptcy.
Cineworld plans to emerge from bankruptcy during the first half of 2023Getty – Contributor
The debt-ridden group, which runs around 750 sites globally, filed for bankruptcy in the US last year.
It made the decision after struggling with attendance following the coronavirus pandemic.
Cineworld employs around 28,000 workers globally, with operations in 10 countries.
At the time, the future of the chain’s 129 UK and Irish cinemas looked at risk.
Cineworld, which also owns the Picturehouse chain in the UK, launched a process to find a potential buyer.
However, after struggling to find an acceptable offer, it said on Monday it will now halt the potential sale efforts for the businesses in the UK, US and Ireland.
Cineworld also said that it will restructure its roughly $5billion debt pile to emerge from bankruptcy during the first half of 2023.
To do this, the cinema chain will borrow an additional $1.46billion (£1.2 billion) in new credit, and provide $800million (£651 million) of equity to its lenders.
The group said it will continue to trade as “business as usual” throughout the financial restructuring process.
Mooky Greidinger, chief executive of Cineworld, said: “This agreement with our lenders represents a ‘vote-of-confidence’ in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.
“With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering moviegoers the most immersive cinema experiences and maintain its position as the ‘best place to watch a movie’.”
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
Cineworld also operates 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
Cineworld will also open three new Picturehouse cinemas in Chester, Ealing and Epsom.
Cineworld’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 growth in streaming services.