CINEWORLD has said it will shut another six of its cinemas following a major restructuring process.
The cinema chain revealed the fresh closure plans after formally completing a restructuring plan it launched in the summer to shore up its finances.
Cinema chains have struggled since the pandemic, as customers have become accustomed to streaming films at home[/caption]
Cineworld stated that the plan’s outcome has enabled the brand to address “unsustainable operating costs”.
The cinema chain has successfully negotiated rent reductions at dozens of its 90 UK sites, resulting in significant savings and allowing the company to better shore up its finances.
However, landlords at six sites have decided to end their contracts with the chain.
As a result, Cineworld has been forced to close an additional six screens, located in :
- Castleford
- Leigh
- Middlesbrough
- Northampton
- Poole
- Weymouth
The Sun previously revealed that the Weymouth branch will close for the final time on Monday, December 30.
We’ve asked Cineworld to confirm when the other sites will close for good.
The latest closure announcement comes just weeks after Cineworld closed its screen in Shaw Ridge, Swindon.
In July, Cineworld revealed that its sites across Glasgow Parkhead, Bedford, Loughborough, Yate and Swindon Regent Circus would close in October.
What has happened at Cineworld?
The closures have formed part of a major restructuring plan to keep the company’s head above water.
In October, a judge gave the go-ahead for £16million to be injected into Cineworld’s four companies which form the business.
Cineworld has bolstered its financial position further by gaining access to additional funding, including £40 million in liquidity.
Alongside this, the company is set to invest up to £35 million in capital expenditures, focusing on the refurbishment and enhancement of existing cinemas.
Javier Sotomayor, president of Cineworld International said: “The successful completion of our restructuring plan, achieved with the crucial support of our landlords, protects thousands of jobs across the UK and provides us with the financial stability to continue investing in delivering extraordinary experiences for our valued customers.
“This milestone sets the stage for a brighter future, enabling Cineworld to continue sharing joy in communities across the UK for many years to come.”
This development follows a long period of trouble at Cineworld.
Just last year, the business emerged from Chapter 11 bankruptcy in the US.
Filing for a Chapter 11 bankruptcy means a company intends to reorganise its debts and assets while remaining in business.
The company’s shares plunged almost 99 per cent in the five years to 2023, as it was hit particularly hard by the pandemic and the enforced closure of its cinema sites.
Shortly after, Cineworld’s UK arm collapsed into administration on July 31.
The cinema chain was de-listed from the London Stock Exchange a day later.
When a company enters administration in the UK, all control is passed to an appointed administrator, who must be a licensed insolvency practitioner.
Many major cinema chains have struggled following the pandemic as customers got used to streaming films from home.
Big blockbusters such as the Barbie Movie and Oppenheimer drove punters back to the movie theatre last year, but it has not been enough to keep some venues afloat.
What is happening across hospitality and the cinema sector?
CINEWORLD isn’t the only chain that’s struggling.
Odeon confirmed it would close five of its branches in May last year.
Empire Cinema also closed multiple sites in 2023 after falling into administration in July of the same year.
The company made the decision following “a thorough assessment of all available options”.
The hospitality sector has been struggling too.
In April, family favourite restaurant chain Whitbread revealed it was set to shut more than 200 locations and axe 1,500 jobs.
It shared the plans in its full year results, saying it planned to convert 112 restaurants into hotel extensions while closing 126 “loss-making” venues.
Pub giant Wetherspoons has been closing boozers across the UK too, and Byron Burger fell into administration last year.
In March, pizza giant Papa Johns said it would close dozens of locations.
