Cineworld in talks with landlords on UK closures - report

16th Jul 2024 13:59

(Sharecast News) - Cineworld has reportedly started talks with UK commercial landlords about plans to shutter up to 25% of its British cinema estate.

Property owners including Landsec and Legal & General, which between them own about 30 Cineworld multiplexes, were in discussions with Cineworld about a restructuring plan, Sky News reported citing unnamed sources.

City sources said a date had been set for a hearing at which a majority of creditors would need to approve the cinema operator's proposals to close about 25 sites, with rent reductions being sought at a further 50.

Some landlords are said to be considering opposing the proposals, although it is unclear whether that would be in sufficient number to block the restructuring plan, the report stated.

Cineworld initially held talks about a sale of the business with prospective buyers but has now switched its focus to a restructure.

The company trades from more than 100 sites in Britain, which includes the Picturehouse chain, and employs thousands of people, although its public relations adviser has refused to confirm either figure.

Cineworld grew under the leadership of the Greidinger family, buying chains including Regal in the US in 2018 and the British company of the same name four years earlier. However, its a multibillion dollar debt burden ultimately led it into Chapter 11 bankruptcy protection in 2022.

It delisted from the London Stock Exchange last August, as its share price collapsed. Under the deal struck last year, several billion dollars of debt were exchanged for shares, with a significant sum of new money injected into the company by a group of hedge funds and other investors.

Cineworld also operates in central and Eastern Europe, Israel and the US.

Reporting by Frank Prenesti for Sharecast.com