Cineworld has confirmed it will close six sites across the UK as part of a restructuring plan. The world’s second-largest cinema chain said it faced “increasingly high and unsustainable operating costs” as it begins a consultation process with employees at the affected sites. Cineworld, which also owns the Picturehouse chain, is among several cinema companies impacted by the rise of streaming services, delays in film releases due to strikes among actors and writers, and increased living costs for consumers. A spokesperson for the business said: “We are implementing a Restructuring Plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.” They added that the six sites it intends to close were “commercially unviable”, with the restructuring plan intended to bring the business back into profitability. Cineworld has confirmed the following sites will close: Cineworld is beginning a consultation process with employees at the six affected cinemas. In a statement, a spokesperson said the company “will offer redeployment to as many of them as possible at nearby sites” - but jobs are at risk. As well as the site closures, the restructuring plan aims to reduce rent at other UK locations, and the business is looking for further funding to return to profitability. Cineworld was founded in 1995 in Stevenage. It began with the opening of its first cinema in that location and has since grown to become the world's second-largest cinema chain (after AMC Theatres), with 9,139 screens across 747 sites in 10 countries. In 2012, it acquired the Picturehouse chain, which allowed it to diversify its offerings and appeal to a broader demographic. Then in 2018, the company acquired Regal Entertainment Group in 2018, which expanded its footprint in the United States, but significantly increased its debt burden. This large debt load has placed financial strain on the company, particularly during periods of reduced revenue and cash flow. 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. Even before the Covid-19 pandemic, Cineworld and other chains were facing challenges from the growth of streaming services., with the availability of high-quality content on streaming platforms reducing the demand for traditional cinema attendance, especially for less blockbuster-oriented films. What are your thoughts on the Cineworld closures and the future of cinema in a digital age? Share your opinions, concerns or suggestions in the comments section below.
