Nearly 20 additional Cineworld theaters are at risk of closure next month as urgent negotiations take place with property owners.
Sky News has discovered that the corporation has identified 18 locations throughout the UK that may shut down before Christmas if arrangements are not finalized with their landlords.
Should the discussions to keep these venues operational fail, the closures would compound the five already shuttered during the summer, bringing the total to 23.
Cineworld recently obtained judicial approval for a restructuring strategy that implemented significant rent reductions for numerous landlords of its theaters.
This contentious plan faced resistance from several prominent landlords, such as British Land and Land Securities, yet garnered enough backing from creditors to proceed.
The uncertainty surrounding the additional 18 locations contradicts the company’s statement in August, which claimed that only five sites would close and labeled reports of approximately 25 venues at risk as “inaccurate”.
A representative for Cineworld remarked: “We want to assure our customers and staff that we have no intentions of closing any more theaters beyond the five that have already shut.
“Nonetheless, there are 18 theaters remaining within our network where we are awaiting further dialogue from landlords regarding their plans.
“We are pleased to report that none have issued notices to date, and we continue to be optimistic that they will collaborate with us to maintain these cinemas.”
Documents shared during the restructuring process emphasized that the firm did not possess adequate resources to cover a quarterly rent obligation due on June 24 of £15.9 million.
“Without this funding, the UK Group would have faced insolvency on a cashflow basis,” they stated.
Other cinema operators are now prepared to seize some of Cineworld’s remaining locations.
The company operates from over 100 sites in Britain, including the Picturehouse chain, and employs thousands of staff members.
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Cineworld expanded under the direction of the Greidinger family, evolving into a global powerhouse in the industry, acquiring chains such as Regal in the US in 2018 and the British counterpart of the same name four years prior.
However, its multibillion-dollar debt burden resulted in crises, compelling the company to seek Chapter 11 bankruptcy protection in 2022.
It was delisted from the London Stock Exchange in August 2023, following a drastic decline in its share price amidst concerns over its viability.
Cineworld also has operations in Central and Eastern Europe, Israel, and the United States.
