CINEMA enthusiasts were left heartbroken after Cineworld announced it would be releasing in several theaters across the UK.
The main entertainment operator announced on Saturday that it would close six locations in other areas of the country.
Sites in Glasgow, Bedford, Hinckley, Loughborough, Yate and Swindon will follow in the coming months.
The decision to stop activities at those sites is a primary restructuring of the company, which is suffering from debt.
If the plan is approved by the court, the closures will become effective in late September 2024.
The operator of more than one hundred movie theaters in the United Kingdom would also be renegotiating the lease contracts for about fifty of its facilities.
Distressed companies do this to reduce operating prices and retain more of their physical assets.
However, the owners do not want to settle for what is proposed in those 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 spokesperson for Cineworld said: “We are implementing a restructuring plan that will provide our business with a strong platform to make our business profitable again, attract new business investment and a long-term sustainable future for Cineworld in the United Kingdom. “
News of the closures disappointed chain enthusiasts, with many expressing their sadness on social media.
Writing on X, formerly known as Twitter, one of them said, “Receiving the email my local Cineworld is in finally broke my heart. “
“They closed the Bristol one last year, now Yate is about to close. The closest cinema to us is over 20 miles away,” wrote another.
Another cinephile described the news of Glasgow’s lockdown as a “punch in the gut”.
“I don’t need to be dramatic, but it’s a real blow to see Glasgow Renfrew Street on Cineworld’s list of cinemas in danger of closing,” they said.
A fourth described the closure of their community as “another blow to the city center. “
Many major theater chains have struggled as a result of the pandemic, as consumers have become accustomed to streaming movies from home.
Blockbusters like The Barbie Movie and Oppenheimer brought punters back to theaters last year, but it wasn’t enough to keep some theaters afloat.
Here are the cinemas that will close; The precise dates on which they will close their doors have not yet been decided.
Earlier this month, Cineworld reportedly compared its characteristics and contemplated a primary restructuring, which could be accompanied by 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 move could “put an unknown number of UK cinemas at risk 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 U. S. The U. S. expired last year.
Filing for Chapter 11 bankruptcy means that a business intends to reorganize its debts and assets while remaining in business.
At the time, the long history of the channel’s 129 British and Irish theaters seemed to be in jeopardy.
The company’s shares plunged roughly 99% in the five years leading up to 2023 as it hit hard with 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 have been comparing plans for a first restructuring.
The company has posted significant losses on platforms that provide streaming services, such as Netflix and Amazon Prime.
CINEWORLD is the only channel in difficulty.
Odeon has announced that it will close its branches in May last year.
Empire Cinema closed several sites in 2023 after moving into management in July of that year.
The company made this decision after “a thorough evaluation of all available options. ”
The hotel sector is struggling.
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 extensions and eventually 126 “loss-making” establishments.
Pub Wetherspoons also closed bars across the United Kingdom and Byron Burger fell into receivership last year.
In March, Pizza Papa Johns announced it would close dozens of locations.
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