The news comes days after the company said it was in “active discussions with various stakeholders and is evaluating various strategic options to obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction.”
The company cited lower-than-expected admission rates due to a lack of blockbuster movies due to falling business.
“Despite a gradual recovery in demand since reopening in April 2021, recent admission levels have been below expectations,” the company said. “These lower levels of admissions are due to a limited film slate which is projected to continue through November 2022 and is expected to have a negative impact on the Group’s trading and liquidity position in the near term.”
In response to reports, Philippa Childs, director of BECTU, said: “This is very worrying news, particularly for the UK Cineworld and Picturehouse workforce, which has already been through a tumultuous time during the pandemic. The UK film industry has taken an incredible hit due to Covid-19 and this latest news will be very unsettling for film workers.”
The statement continued: “We will do all we can to support our members during this difficult time and will look to Cineworld to mitigate the impact of any bankruptcy settlement on their employees.”
The showing of films in theaters has been one of the hardest-hit sectors of the industry, as Covid-19 forced theaters to close for an agonizingly volatile and prolonged period for bosses, workers and the public. cineworld You are not alone in evaluating your future. Vue International is restructuring and AMC has been maneuvering to lower the risk of survival.
In March, cineworld reported 2021 revenue of $1.805 billion. Operating profit also recovered, reaching $15.8 million, versus a loss of $2,258 million in 2020. The group as a whole posted a pre-tax loss of $708.3 million for the year affected by the Covid-19 in which theaters were closed for most of the first half.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
