Cineworld, a major player in the U.K. cinema market, has revealed plans to close six of its locations as part of a broader Restructuring Plan (RP) aimed at revitalizing the company’s financial health.
The sites slated for closure include Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon Circus.
The closure announcement comes as Cineworld grapples with what it describes as “increasingly high and unsustainable operating costs.” The company’s restructuring efforts extend beyond these closures, encompassing a strategy to renegotiate lease terms and reduce rents to market levels at select UK locations.
Cineworld’s proposed RP, if approved by the court, is expected to take effect in late September 2024. The plan aims to provide the cinema chain with access to additional funding, reduce liabilities and support a significant capital expenditure program in the U.K.
Employees at the affected sites will enter a consultation process, with Cineworld pledging to offer redeployment opportunities at nearby locations where possible. The company emphasized that the total number of impacted sites remains fluid until the restructuring process concludes.
A Cineworld spokesperson stated: “We are implementing a Restructuring Plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the U.K.”
Cineworld owns the Regal cinema chain in the U.S. The RP will not affect Cineworld’s operations outside the U.K., and the company assured that all its U.K. cinemas will continue to operate normally during the restructuring period.
The closure of these six Cineworld locations comes on the heels of recent shutdowns within the company’s Picturehouse chain. In June, Picturehouse confirmed the closure of three London sites – Fulham Road, Stratford East and Bromley Picturehouse.
Source Agencies
