Cineworld “is about to file for bankruptcy” after a slow recovery from the Covid pandemic | City & Business | Finance

The company, the world’s second-largest movie theater company with nearly 800 locations, reportedly hired attorneys from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process. It is understood that Cineworld is exploring new options to improve its financial situation after the industry was extremely affected by the COVID-19 pandemic.

Shares of the entertainment chain plunged more than 60% – to a record low of 8.24p – on Wednesday, reports birmingham live. In a stock market statement earlier this week, Cineworld said it was in “active discussions with various stakeholders”.

A spokesperson added: “Despite a gradual recovery in demand since reopening in April 2021, recent admission levels have been below expectations.

“These lower levels are due to a limited film slate which is expected to continue through November 2022 and is expected to negatively impact trading and the group’s liquidity position in the near term.

“The group has taken proactive steps to ensure it has the balance sheet strength and flexibility to adapt to market conditions.

“The group’s commercial operations should not be affected by these efforts and Cineworld expects to continue to meet its ongoing commercial counterparty obligations.”

But writing on social media, moviegoers weren’t surprised by Cineworld’s post-pandemic woes.

One man said: ‘Not surprised at the price he charges.’

Another posted: ‘Not surprised when you get charged that much.

A third said: “Cineworld is so expensive! When you can go elsewhere for the same movie for less, it’s no wonder.”

Others shared their sadness at their favorite movie channel experiencing such issues.

One woman posted, “Oh no. Been a loyal customer for 11 years.”

Philippa Childs, head of entertainment and media union Bectu, told PA: “This is very worrying news, especially for UK workers at Cineworld and Picturehouse who have already gone through a tumultuous time during the pandemic.

“The UK film industry has suffered an incredible blow due to Covid-19 and this latest news will be very troubling for film workers.

“We will do everything we can to support our members during this difficult time and will look to Cineworld to mitigate the impact of any bankruptcy settlement on its employees.”

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