Cineworld, the world's second-largest cinema chain, is reportedly considering closing approximately 25 of its UK cinemas as part of a comprehensive restructuring plan. The company, which was delisted from the London Stock Exchange last year following a collapse in its share price, is also looking to renegotiate rent agreements at 50 of its remaining UK locations.
The proposed closures and rent renegotiations aim to address the company's significant debt burden, which has been exacerbated by the COVID-19 pandemic and a slower-than-expected recovery in the cinema industry. Cineworld filed for Chapter 11 bankruptcy protection in the US in 2022 and emerged from it last year, but it continues to face financial challenges.
The restructuring comes at a time when the cinema sector is still recovering from the pandemic's impact, which forced the closure of cinemas for extended periods. Additionally, the recent Hollywood writers' and actors' strikes have further hampered the industry's recovery by delaying film productions and impacting the availability of new releases.
Industry experts predict that the cinema industry will not return to pre-pandemic levels until at least 12 months from now, as it grapples with both a supply issue of new films and the lingering effects of the strikes.
Cineworld's restructuring plan highlights the ongoing challenges faced by the cinema industry in adapting to a changing landscape, including the rise of streaming services and the economic pressures on consumers. The company's decisions will have significant implications for its employees and the broader UK cinema market.
