CINEWORLD is preparing to file for bankruptcy ‘within weeks’, according to recent reports.
The chain – which runs the Island’s only cinema – has brought in lawyers to advise on the bankruptcy process, a Wall Street Journal report stated.
Cineworld had hoped that big releases such as Top Gun: Maverick and The Batman could help speed up its recovery from the impact of the pandemic, but has said audience numbers remain low and film releases were ‘limited’.
Shares in the company, which is saddled with £4bn of debt, fell sharply following the WSJ report that it was ‘preparing to file for bankruptcy within weeks’.
The cinema chain employs thousands of workers, with operations in 10 countries.
After Cineworld shut its cinemas across the UK during the pandemic, the Island’s cinema at the Waterfront did not reopen until June last year, with the company saying in October 2020 that it remained closed due to financial concerns.
The company recently 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 admissions 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 term.’
