CINEWORLD has revealed six sites in the United Kingdom that it will close when the first of a primary restructuring begins.
Venues in Glasgow, Bedford, Hinckley, Loughborough, Yate and Swindon will open their doors in the coming months.
The logo is now initiating a consultation procedure with workers at those sites and will seek to redistribute them to nearby sites.
A Cineworld spokesperson said: “We are implementing a restructuring plan that will provide our business with a strong platform to return our business to profitability, attract new investment from the organization and a long-term sustainable future. for Cineworld in the UK. »
If the plan is approved by the court, it is expected to go into effect by the end of September 2024.
The total number of affected sites will be displayed until the procedure is complete.
The chain is reportedly in the process of renegotiating the leases for about fifty of its premises.
Distressed companies do this to reduce operating prices and retain a larger share of their physical assets.
However, homeowners are not required to conform to what is proposed in those discussions.
This means that up to 50 more Cineworld resorts could also threaten to close 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 cinema operators will step in to take over some of Cineworld’s facilities.
These are the cinemas that are expected to close; The exact dates of its permanent closure have not yet been decided.
Cineworld’s creditors and owners are expected to officially obtain the plans (July 26).
A creditor is an individual, business, or monetary establishment to whom the business owes cash or is obligated to pay a debt.
In the past, it has been reported that Cineworld’s restructuring is expected to be carried out through an express insolvency mechanism and not through a voluntary corporate agreement (CVA).
Insolvency mechanisms aim to save the company, liquidate it or discharge returns to creditors.
A CVA aims, in particular, to allow the business to continue its operations while paying off its debts over time.
As of July 2024, the cinema chain operates one hundred Cineworld-branded screens in the UK and Ireland, as well as a further 28 under the Picturehouse brand.
At the moment the channel 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 the 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, the Papa Johns pizzeria announced that it would close dozens of establishments.
Earlier this month, Cineworld reportedly evaluated its characteristics and 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 liquidity 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 United States that expired last year.
Filing for Chapter 11 bankruptcy 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 cinemas was in jeopardy.
The company’s shares plummeted about 99% in the five years leading up to 2023 as it was hit hard by the pandemic and the forced closure of its movie theaters.
Shortly after, the British division of Cineworld became managed on July 31.
The cinema chain was delisted from the London Stock Exchange a day later.
When a company goes into management in the United Kingdom, everything is transferred to an appointed administrator, who must be a licensed insolvency practitioner.
Since then, directors appointed at Alix Partners have been comparing plans for a primary restructuring.
The company posted significant losses on platforms that offer streaming services, such as Netflix and Amazon Prime.
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