Regal Owner Cineworld to Shutter Six U.K. Sites in Restructuring Bid

variety.com:

Naman Ramachandran Cineworld, a major player in the U.K. cinema market, has revealed plans to close six of its locations as part of a broader Restructuring Plan (RP) aimed at revitalizing the company’s financial health.

The sites slated for closure include Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon Circus. The closure announcement comes as Cineworld grapples with what it describes as “increasingly high and unsustainable operating costs.” The company’s restructuring efforts extend beyond these closures, encompassing a strategy to renegotiate lease terms and reduce rents to market levels at select UK locations.

Cineworld’s proposed RP, if approved by the court, is expected to take effect in late September 2024. The plan aims to provide the cinema chain with access to additional funding, reduce liabilities and support a significant capital expenditure program in the U.K.

Employees at the affected sites will enter a consultation process, with Cineworld pledging to offer redeployment opportunities at nearby locations where possible.