The cinema chain is struggling in the wake of competition from streaming services, delays in film releases due to actor and writer strikes, and increased living costs for customers
Movie chain Cineworld is reportedly planning to shut dozens of its UK sites as part of a wider shake-up.
The company is also said to want to slash the rent bill on its cinema venues in a bid to reduce costs. The move comes amid tough trading for cinemas in the wake of the Covid crisis, and then the Hollywood strikes, which has led to a shortage of blockbusters to show.
Some Hollywood studios have also opted to release movies on streaming services such as Netflix soon after, or at the same time, as they hit the big screen. Cineworld, which has around 100 sites across the country, is expected to launch closures as part of a formal restructuring plan.
Sky News reported that the group, which was taken private last year, will also seek renegotiated rents on around 50 other cinemas, with the remaining roughly 25 sites untouched by the process. Restructuring proposals are expected to be formally outlined to creditors including landlords in the coming weeks.
It is understood that financial services firm AlixPartners is acting as an adviser during the process. The group was listed on the London Stock Exchange until last year, when it was taken over by investors and hedge funds after it had been hamstrung by its multibillion-pound debt pile.
The investors exchanged billions of pounds worth of debt for equity in the business, after the group also filed for bankruptcy protection in the US.
