cineworld

Regal Cinemas: Cineworld says may file for Chapter 11 bankruptcy


London
CNN Business
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The owner of cineworld-reopening/index.html”Regal Cinemas is having a tough time its stock crashed as much as 80% Friday after reports that its parent company is preparing to file for bankruptcy.

British company Cineworld Group said in a statement that a “voluntary Chapter 11 filing in the United States” was one of the options it was reviewing in an attempt to reduce its debt burden.

Meanwhile, Cineworld and Regal theaters were open for “business as usual,” it added, and would remain so.

“Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees,” the company said in the statement issued in response to reports last week.

Shares in Cineworld crashed as much as 80% in London on Friday after the Wall Street Journal reported that the world’s second largest movie theater chain had spoken to lawyers at Kirkland & Ellis LLP to advise on the bankruptcy process in the United States and United Kingdom.

The company’s stock fell another 20% Monday. The news also contributed to a plunge of more than 30%

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Owner of Regal Cinemas Says Bankruptcy Filing Is Possible

Cineworld, the owner of major movie theater chain Regal Cinemas, is on the cusp of bankruptcy, according to multiple reports.


The London-based parent company confirmed to BBC News that it is considering bankruptcy and is asking attorneys from Kirkland & Ellis LLP and consultants from AlixPartners, for guidance on next steps, according to regal-cinemas-owner-cineworld-prepares-for-bankruptcy-filing-11660910944″ data-component=”link” data-source=”inlineLink” data-type=”externalLink” data-ordinal=”2″The Wall Street Journal.


Cineworld has amassed $4.8 billion in debt, according to WSJ, and it operates more than 751 locations around the world. Its U.S. subsidiary, Regal, currently has 505 theaters in 42 states, along with American Samoa, the District of Columbia, Guam and Saipan as of April, according to the company’s website.




The news comes nearly two years after Regal and other cinemas were forced to temporarily shut down its theaters in October 2020 amid the COVID-19 pandemic.


Cineworld claimed ticket sales have been lower than anticipated and a short supply of blockbuster films this fall is also prompting the move, according to CNN Business, which got a statement from the company that operations would still be “business as usual” for its Regal locations.


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