Cineworld closures: Dozens of sites to close under plans

The major cinema chain is reportedly drawing up plans to exit dozens of its roughly 100 sites as part of a restructuring.

The multiplex operator is also said to want to renegotiate its rent agreements at a further 50 sites.

The remaining 25 would be untouched by the restructuring plans, Sky News has reported.

Cineworld listed on the London Stock Exchange until last year ( Alamy) (Image: Alamy)

Sources speaking to the news outlet have said that formal proposals were expected to be outlined to creditors including landlords in the coming weeks.

"We continue to review our options but we don't comment on rumours and speculation," a Cineworld spokesperson has said:

The restructuring is expected to be carried out through a specific insolvency mechanism rather than a company voluntary arrangement (CVA).

The aim of insolvency mechanisms is to either rescue the company, liquidate it, or achieve the best return for creditors.

Meanwhile, under a CVA, a company can continue trading while repaying its debts overa period of time.

Creditors which include individuals, businesses, or financial institution to whom the company owes money or is obligated to repay a debt.

The news comes after Cineworld held initial talks about a sale with prospective buyers last month. 

It was reported that it had then switched to a formal restructuring process which is being advised by AlixPartners.

At the time of the report, a spokesperson for Cineworld said it was "continually reviewing" its UK operations "like many businesses".

It is thought that other cinema operators may step in to take over some of Cineworld's sites if a sufficient number of landlords refuse to agree to the proposed terms.

Cineworld in the UK fell into administration on July 31 and was delisted from the London Stock Exchange a day later.

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The chain had filed for Chapter 11 bankruptcy in the US in 2022 as a result of debts and low footfall.

After emerging from bankruptcy protection, Cineworld has appointed a new leadership team, installing Eduardo Acuna, who ran Mexican cinema chain Cinepolis's operations in the Americas, as its chief executive.

The company is said to trade from more than 100 sites in Britain, including at the Picturehouse chain, and employs thousands of people.