Cineworld to file for bankruptcy 'within weeks' as shares plummet

The company has eight cinemas in Scotland, including a flag ship location in Glasgow.

Cineworld cinema chain to file for bankruptcy ‘within weeks’ as firm struggles iStock

Cineworld is preparing to file for bankruptcy “within weeks”, according to reports.

It comes after a plummeting in shares in the company.

The Cineworld Group also owns the Picturehouse chain in the UK and Regal Cinemas in the US.

It has blamed a “limited” film slate for weak audiences in recent months.

There are currently eight Cineworld Cinemas in Scotland, including the flagship site in Glasgow’s city centre.

Across the UK, it has another 87 locations in England and 5 locations in Wales.

Cinemas were among the venues closed during the coronavirus pandemic, hitting sales hard.

Advertisement

They have also been hampered by a slowing in film production for cinematic release during Covid.

And theatres face a battle against streaming giants, with increasing numbers of films being released on platforms for audiences to watch at home.

Cineworld has so far declined to comment.

However, the company told the London Stock Exchange: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.

“These lower levels of admission are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near future.”

At the end of the last financial year, the company was saddled with around £4bn in debt.

It has said that it is considering restructuring its balance sheet in order to protect its future.

HTTP_HOST: news.stv.tv ISSET_HTTP_HOST: 1