Movie Theaters’ Closure
Cineworld Group PLC, the world's second biggest theater chain and the owner of Regal Cinemas, is preparing to file for bankruptcy after struggling to rebuild its audience. The British entertainment conglomerate, which reopened theaters last year, said attendance has lagged due to a lack of blockbuster films and will likely persist through November, potentially complicating efforts to cut its debt.
Cineworld operates 751 sites in 10 countries, including more than 500 Regal Cinemas theaters in the US. It saw about 95 million moviegoers in 2021, compared to the 275 million in 2019. Earlier this year, the company said it was looking for new sources of liquidity, as it faces payment obligations to former Regal shareholders and a multimillion-dollar dispute over its failed acquisition of Canada's Cineplex. Cineworld had net debt of $8.9B at the end of 2021 and revenues of $1.8B.
Total box office ticket sales in the US have been down roughly 30%, compared to prepandemic levels (see comparison), partly due to some production companies choosing to directly release to streaming platforms.
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