Cineworld will reportedly announce several UK closures and many job cuts as part of a first restructuring plan.
Sky News reports that the cinema chain will publish the main points of the plan tomorrow. According to city sources, around 25 Cineworld theaters will close by the end of this summer, but a dozen of them could close “immediately. “discussions on hiring reductions.
The exact number of potential task losses is still unclear, but resources say it could be “at least hundreds. “If the plan is approved, 25 movie theaters will not be affected. However, if enough landlords refuse to accept the new lease terms, the 50 Cineworld complexes whose lease is being renegotiated could also be in danger of closing. Cineworld first initiated negotiations to sell the business, but it has now moved into a “formal restructuring” procedure and is being negotiated through AlixPartners.
Other cinema operators are expected to step in and take over some of Cineworld’s closed theaters. It is not yet clear which Cineworld sites could be affected.
The cinema chain has more than a hundred sites in the United Kingdom and the Republic of Ireland, operating under the Cineworld and Picturehouse brands; Globally, the chain has around 750 sites. Like other cinema chains, Cineworld has been hit hard by the Covid-19 pandemic and the lockdowns that have been imposed. On top of this, Cineworld faced the added pressure of having to compete with streaming services.
The chain racked up billions of dollars in debt that led to monetary turmoil and forced the company to file for Chapter 11 bankruptcy coverage in the United States starting in 2022. The organization was indexed on the London Stock Exchange until last year, when it was absorbed. through investors. At the time, Cineworld was under pressure that the move would not affect the holding company’s operations in the United Kingdom. Cineworld has been contacted for comment.
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