Nov 19, 2020
Cineworld considers CVA in struggle to survive
The world's second largest cinema chain Cineworld is considering slashing rents and permanently closing UK cinemas after lockdown restrictions and a lack of blockbuster films caused business to collapse. The precariousness of Cineworld's financial position has been exacerbated by its decision in October to shut all of its 657 UK and US cinemas after Hollywood studios delayed a series of film releases that the chain had been banking on to bring in customers over the winter. Rival cinema chains Vue, Odeon and Everyman have also hired advisers to negotiate with lenders and landlords. One person familiar with the company's situation said that Cineworld, which runs cinemas in eight other countries outside the US and UK, might still need a broader restructuring to reduce its debt. "Cineworld corporate policy was that cinemas would be refurbished and extended to create the best blockbuster experience. Many of their sites are probably 30 per cent or more bigger than their peer group," he said.
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