Cineworld is reportedly preparing to file for bankruptcy in the US and considering insolvency proceedings in the UK after struggling to bring customers back to the cinemas following the pandemic.
According to the Wall Street Journal, the company has contacted law firm Kirkland & Ellis LLP and AlixPartners consultants to advise on the bankruptcy process and is expected to file for bankruptcy “within weeks”, according to a source.
RadioTimes.com has reached out to Cineworld for comment.
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Earlier this week, Cineworld released a stock exchange statement revealing that it was in “active discussions with various stakeholders” after finding that “recent admission levels have been below expectations”..
The cinema chain added that it was evaluating strategic options to obtain additional liquidity and reduce debt after running up over $4.8 billion in losses during the pandemic.
“These lower levels [of admission] are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term,” the company said.
Cineworld currently operates 751 sites across 10 countries, including the UK’s Cineworld and Picturehouse as well as Israel’s Yes Planet and Regal Cinemas in the US.
However, despite successful releases such as Top Gun: Maverick, The Batman and Thor: Love and Thunder, the company’s market value dropped to £100m this week after being valued as up to £4.4 billion before the pandemic.
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