Regal Cinemas Owner Cineworld Is Considering Filing for Bankruptcy
The conglomerate operates over 500 theaters across 10 countries.
Cineworld, the owner of Regal Cinemas, is considering filing for bankruptcy in the United States. The British conglomerate operates 9,518 screens across 790 sites and is the second-largest movie theater chain, following AMC.
In a statement released on Monday, Cineworld said that a “voluntary Chapter 11 filing in the United States” is among the “strategic options” the company is considering as it seeks to grapple with its debt burden.
Cineworld attributed its financial struggles to lower admissions at theaters due to a limited lineup of films. The company was also forced to close theaters for several months throughout the pandemic.
In the meantime, Cineworld theaters will be open for business as usual and continue to welcome guests and members,” the company said.
“Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees,” the statement continued.
The statement arrives following the Wall Street Journal report on Friday that Cineworld had consulted lawyers on potentially filing for bankruptcy. After the article was published, Cineworld shares dropped as much as 80%, followed by another 20% on Monday.
Cineworld said that its evaluation of options “remains ongoing” and it will make an official announcement when appropriate.
In other entertainment news, Nathan Fielder’s docu-comedy The Rehearsal has been renewed for a second season.
