Cineworld to cut hundreds of jobs in restructuring - report

25th Jul 2024 11:23

(Sharecast News) - Cineworld will reportedly unveil a sweeping overhaul this week that will cost hundreds of jobs and reduce its British footprint by at least a quarter.

According to Sky News, the cinema chain will publish details of a restructuring plan on Friday that will result in the closure of around 25 sites across the UK.

City sources told Sky that around half a dozen Cineworld cinemas would begin a closure process immediately and close their doors for the last time later in the summer.

The precise number of job losses was unclear, although one source said it would be "at least in the hundreds".

The company has been in preliminary talks with some of Britain's biggest commercial landlords, including Landsec and Legal & General, about its restructuring plans.

A majority of creditors will need to approve the cinema operator's proposals to close about 25 sites, with rent reductions being sought at a further 50.

Roughly 25 cinemas will be unaffected if the plan is approved, according to Sky.

A number of 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.

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

The company is being advised by AlixPartners.

Sky said other cinema operators are expected to step in to take over some of Cineworld's sites.

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