Struggling cinema chain Cineworld has said its screens will remain open despite its plans to file for administration to cut its huge debts. Cineworld, which is the world's second-largest cinema chain, was hit hard by the Covid pandemic when many of its theatres were forced to close.
Cineworld officially filed for administration in July but its UK cinemas remain open as normal. It comes after the chain filed for Chapter 11 bankruptcy in the US last year due to its debts and low footfall. It exited the Chapter 11 bankruptcy this summer.
Despite going bust, the company will stay operational and screens will stay open. While existing shareholders will be wiped out, departing executives at Cineworld will share a windfall payment of £28 million to exit.
There are also obvious economic challenges, with reduced availability of public funding, a cost of living crisis, and a rise in energy prices, all of which have impacted the sector and seen the recent closures of key independent cinemas.
The restructuring plan is set to wipe out shareholders in the cinema chain in order to support its lenders and creditors. Cineworld said: “Cineworld continues to operate its global business and cinemas as usual without interruption, and this will not be affected by the entry of Cineworld Group plc into administration.
The Empire Cinema chain has entered administration, leading to the loss of 150 jobs and the closure of six cinemas. Eight of the 14 cinemas in the group - under the Empire Cinema and Tivoli brands - will remain open.
Cineworld stressed that the restructuring process “does not provide for any recovery for holders of Cineworld's existing equity interests.” In its statement, Cineworld said that its cinemas continue to operate and this will continue to be the case as it emerges from Chapter 11 and moves into administration.
In 2021, the total revenue of Cineworld Group plc stood at around 1.8 billion U.S. dollars, up 112 percent from the 852.3-million-dollar revenue reported a year earlier.
The planned Cineplex takeover by was abandoned in 2020, with Cineworld citing breaches in the merger agreement, prompting a C$1.23 billion ($894.81 million) damages claim by the Canadian business.
Empire Cinemas has collapsed into administration with the immediate loss of 150 jobs. Six cinemas in the chain have closed, with a further eight under threat.
Cineworld has announced plans to close its only Bristol cinema, at Hengrove Leisure Park, on 26 November. In an email to members, a spokesperson said: "After years of providing movie-lovers in Bristol with a place to feel more, we have made the difficult decision to close Cineworld Bristol."
The British Film Institute's stats show that 2022 saw 117 million ticket sales compared to 176 million in 2019. The big releases of the past year seem to have reminded people of the good of cinema.
Cineworld continues to operate its global business and cinemas as usual without interruption and this has not and will not be affected by the entry of Cineworld Group plc into administration on 31 July 2023.
Movie theaters are not yet on the verge of extinction. But to survive, they'll need to adapt. For Danny Ledger, US entertainment subsector leader for Deloitte Consulting, the key is to make a trip to the theater a unique, customized event for consumers.
UPDATED, 7:30 AM: Cineworld Group has officially entered administration, following an application at the High Court in London. The administration order applies only to Cineworld Group and not to any of its operating companies or subsidiaries such as Regal Cinemas in the U.S. or Picturehouse Cinemas in the UK.
Liquidators have been brought in to wind up Empire Cinemas in High Wycombe after the chain collapsed into administration. Liquidators were appointed on December 21, 2023, according to a new public insolvency notice in The Gazette.
Despite this though, cinemas are undoubtedly still in trouble. The figures don't lie. Many cinemas will likely close, especially if present trends continue and numbers don't significantly rise in the next decade. Streaming, however unstable it is as a market, has certainly changed the game.
For IMAX 3D performances, glasses will be provided at the cinema and are included in the ticket price. For IMAX 3D with Laser screenings the ticket price includes the use of IMAX 3D with Laser glasses.
