A major cinema chain plans to buy 25 places to clean up its finances.
Cineworld will verify the closures when it announces a restructuring plan on Friday, Sky News reports.
Up to 25 cinemas are expected to close before the end of the summer.
The exact number of jobs that would be lost was unclear on Thursday, but it was believed to be “at least hundreds. “
The logo also intends to renegotiate the lease contracts for around fifty of its sites.
Distressed corporations do this to reduce their operating prices and retain more of their physical assets.
However, the owners do not want to settle for what is proposed in these discussions.
This means that up to 50 more Cineworld complexes could also be in danger of closure if the chain and its owners fail to reach an agreement.
A further twenty-five cinemas will be affected by the restructuring plans and will remain open for a foreseeable time.
Other theater operators are expected to step in to take over certain Cineworld sites.
Cineworld has been contacted for comment.
Cineworld’s creditors and owners are expected to officially obtain the plans (July 26).
A creditor is an individual, company, or monetary establishment to whom the company owes cash or is obligated to pay a debt.
It has been reported in the past that Cineworld’s restructuring is expected to be carried out through an express insolvency mechanism and not through a corporate voluntary arrangement (CVA).
Insolvency mechanisms aim to save the company, liquidate it or offload the return to creditors.
A CVA aims, in particular, to allow the company to continue operations while paying off its debts over time.
Since July 2024, the cinema chain has operated one hundred Cineworld-branded screens in the United Kingdom and Ireland, as well as an additional 28 under the Picturehouse brand.
At the moment the channel’s screens are fully operational and open normally.
CINEWORLD is the only channel in difficulty.
Odeon announced that it would close its branches in May of last year.
Empire Cinema also closed several venues in 2023 after falling into administration in July of that year.
The company made this decision after “a thorough evaluation of all available options. ”
The hotel sector is in difficulties.
In April, family-favorite restaurant chain Whitbread revealed it would close more than two hundred locations and cut 1,500 jobs.
The organization shared its plans in its annual results, saying it planned to convert 112 restaurants into hotel expansions and terminate 126 “loss-making” establishments.
Pub Wetherspoons also closed bars across the UK and Byron Burger fell into receivership last year.
In March, the Papa Johns pizzeria announced that it would close dozens of establishments.
Earlier this month, Cineworld reportedly evaluated its features and a primary restructuring, which could come with closures.
Sky News reported that the channel is working with restructuring adviser AlixPartners on a plan that could lead to a sale or restructuring.
According to the broadcaster, such a resolution could simply “expose an undetermined number of British cinemas to the threat of closure”.
A restructuring plan for a company to rework its balance sheet, restructure its debts, and lose money in the company.
At the time of the report’s publication, a spokesperson for Cineworld said it was “continually reviewing” its operations in the United Kingdom “like many companies”.
This came after Cineworld emerged from Chapter 11 bankruptcy in the US that expired last year.
Filing for bankruptcy (Chapter 11) means that a company intends to reorganize its debts and assets while remaining in business.
At the time, the long history of the chain’s 129 British and Irish theaters seemed to be in danger.
The company’s shares plunged roughly 99% in the five years leading up to 2023 as it suffered a severe blow from the pandemic and the forced closure of its movie theaters.
Shortly afterwards, Cineworld’s UK division was placed into administration on 31 July.
The cinema chain was delisted from the London Stock Exchange a day later.
When a company comes into management in the United Kingdom, everything passes to a designated administrator, who must be a licensed insolvency practitioner.
Since then, the directors of Alix Partners compare plans for a first restructuring.
The company has posted significant losses on platforms that provide streaming services, such as Netflix and Amazon Prime.
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