Major update on cinema chain’s future revealed after it filed for bankruptcy

A major update in the future of cinema chain, Cineworld, has been revealed after it filed for bankruptcy.

The firm has said it expects to come out of its bankruptcy protection in July after it received backing from lenders.

It has said it will continue to run its venues ‘without interruption’ and ‘as usual’. 

A statement from the world’s second largest cinema chain read: ‘The group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.’

It also said it was moving forward with a plan to restructure its pile of debt, which currently stands at approximately £4billion.

It comes after the world’s second-largest cinema chain filed for chapter 11 bankruptcy in the US last year due to giant debts and low footfall to its venues.

A chapter 11 bankruptcy case refers to when the debtor remains in possession of the business and may continue to operate as normal while it reorganises its debts and assets.

It can even, with court approval, borrow more money.

Initially Cineworld, which has 129 cinemas in the UK and Ireland, looked to be at risk after it filed for the bankruptcy in the US.

However, since then it has announced it would raise £1.8billion in new funding to remain in operation.

The firm has said it plans to open three more of its Picturehouse venues in Chester, Ealing and Epsom.

Over the course of the past five years, the company’s share price has tumbled by almost 99%, after it was hit especially hard during the pandemic as it was forced to close cinema doors.

The increase in people using subscription services such as Netflix and Disney+ has also hindered its business. 

Cineworld employs 28,000 workers across the globe, where it operates in 10 countries.