Cineworld has published the full list of cinemas in the UK which will close this summer as it tries to save the chain. Earlier this week it was revealed that the group planned to close some UK cinemas in its latest restructuring.
The movie theater chain, which currently operates around 100 locations nationwide, is closing some locations as part of a formal restructuring plan.
Sky News reported that the group, which was taken private last year, will also seek renegotiated rents at around 50 other cinemas. The group, which also runs the Picturehouse chain, is among cinema companies hit by the growth of streaming services, release delays following actor and writer strikes and the increased cost of living for patrons.
Six sites Cineworld will close have been confirmed, as part of its major restructuring plans. It has been reported that places will lose their cinemas “immediately”.
They are said to be Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon Circus. More closures are expected this summer. A spokesman told the Mirror: “We are implementing a restructuring plan to give our company a strong platform to return our business to profitability, attract further investment from the group and ensure a sustainable long-term future for Cineworld in the UK.”
The number of potential job losses is not yet clear but sources say it could be “at least in the hundreds”.
The group was listed on the London Stock Exchange until last year, when it was taken over by investors and hedge funds after it had shed its multibillion-pound debt pile. The investors swapped billions of pounds worth of debt for equity in the business, after the group also filed for bankruptcy protection in the US.
It continued with plans to restructure its debt pile of around US$5bn (£3.8bn) to allow it to emerge from bankruptcy. Cineworld’s UK operations were placed into administration last year as part of its restructuring.
But it stressed the move would not affect UK operations for the holding company, with cinemas remaining open as usual. The group also owns the Picturehouse brand.
Cineworld Group plc, one of the largest cinema chains in the world, was founded by Steve Wiener, a former Warner Bros. executive, in 1995. The first Cineworld cinema opened in Stevenage, UK. The group expanded rapidly and went public in 2007, listing on the London Stock Exchange. This move was aimed at raising capital for further expansion and paying down debt.
In 2012, Cineworld acquired Picturehouse, a chain of boutique cinemas in the UK known for its arthouse and independent film screenings. Since 2014, Cineworld merged with Cinema City International, a leading cinema operator in Central and Eastern Europe and Israel, forming one of the largest cinema groups in Europe.
In 2018, the company made a significant move by acquiring Regal Entertainment Group, the second largest movie theater chain in the United States. This acquisition positioned Cineworld as a global leader in the cinema industry, significantly increasing its market presence.
The Covid-19 pandemic severely affected the cinema industry, with widespread closures and a significant drop in revenue. Facing financial difficulties, Cineworld took measures such as temporarily closing all its UK and US cinemas in October 2020.
Despite the challenges, Cineworld began to reopen its cinemas as vaccination rates increased and moviegoers returned. The company also renegotiated terms with creditors and sought additional financing to stabilize its finances.
In 2022, Cineworld faced continued financial pressure and announced that it was considering options to restructure its debt. The company also explored potential mergers or acquisitions to strengthen its position. A year later, Cineworld filed for Chapter 11 bankruptcy in the United States as part of its restructuring efforts.
The proposal aimed to reduce debt and emerge stronger after the pandemic. The company continued to operate its cinemas during the restructuring process.
