Cineworld, the world’s second largest cinema chain, has unveiled plans to close six of its sites in the UK. The move is part of the company’s extensive restructuring initiative, which is aimed at ensuring a sustainable future for the business. The cinema chain, which operates 101 locations in the UK and Ireland, has encountered difficulties due to the Covid-19 pandemic and the surge in demand for streaming services.
The affected cinemas include Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate, and Swindon Circus. In July last year, Cineworld went into administration, struggling with a debt pile worth an estimated £4 billion. The company, which also owns the Picturehouse chain in the UK, made an effort to find a buyer for some or all of its UK sites but ultimately failed to do so.
Following the decision to close six of its sites, Cineworld has entered into consultation talks with affected staff. The company has stressed that it hopes to redeploy as many employees as possible and has denied claims made in some media outlets that a further 19 cinemas could be closed, or that redundancies could run into the hundreds. The organisation will also negotiate with landlords at some of its sites to help reduce costs. This could involve a reduction in rent fees.
Cineworld is a subsidiary of the Regal Cineworld Group, and before its UK operations entered administration, the company had more than 28,000 staff across 751 sites worldwide, with 128 locations in the UK and Ireland. The business’s operations outside the UK remain unaffected.
In 2019, prior to the onset of the pandemic, Cineworld’s sales were $4.4 billion. Although audience figures began to recover when cinemas reopened, the company estimates that admissions for 2023 and 2024 will remain below pre-pandemic levels. According to a spokesperson for Cineworld, the restructuring plan will provide the company with a robust platform for the future, enabling it to attract further investment from the group. The plans must gain approval from the court. In the meantime, all of Cineworld’s UK operations will continue until at least late September
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