The firm – which additionally owns the Picturehouse chain within the UK – had been looking for a purchaser for some or all of its UK websites, however after failing to take action has introduced plans to shut six websites deemed to be “commercially unviable”.
PR representatives for Cineworld stated affected employees had been contacted to start a session course of and that they hoped to have the ability to redeploy as many individuals as doable.
They strongly denied media stories {that a} additional 19 cinemas might shut, or that redundancies “could run into the hundreds”, as broadly reported elsewhere.
Cineworld may even enter into negotiations with landlords at an unspecified quantity of websites to attempt to cut back prices. This might take the shape of lowered rents.
The firm is part of the Regal Cineworld Group, and when the UK operation entered administration, Cineworld employed greater than 28,000 employees throughout 751 websites globally, with 128 places within the UK and Ireland. Its enterprise operations outdoors the UK aren’t affected.
In 2019, the final full 12 months earlier than the pandemic hit, Cineworld reported gross sales of $4.4bn.
While audiences began returning after the pandemic, the organisation stated in 2022 that it anticipated its admission for 2023 and 2024 to stay under pre-pandemic ranges.
A Cineworld spokesperson stated: “We are implementing a Restructuring Plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.”
The restructuring plans have to realize courtroom approval. While the method is ongoing, all of Cineworld’s UK operations will proceed till at the very least late September.