Cineworld mulls UK cinema closures - report

4th Jul 2024 11:59

(Sharecast News) - Cinema operator Cineworld is considering exiting various UK sites, it was reported on Thursday, as part of a major restructuring.

According to Sky News, the firm is drawing up plans to close around 25% of its 100-odd British multiplexes. It will also seek to renegotiate rent agreements at a further 50 sites.

Citing unnamed sources, Sky added that proposals were expected to be formally outlined to creditors later this summer.

A Cineworld spokesperson told Sky: "We continue to review our options but we don't comment on rumours and speculation."

London-listed Cineworld, which operates more than 700 sites in 10 countries, including the US, struggled to recover from the pandemic. It was further hit by a fall in blockbuster releases, and debt levels surged.

It filed for Chapter 11 bankruptcy protection in the US in 2022, emerging a year later before filing for administration in the UK. Trading in its London-listed shares was suspended in 2023.