Monday, December 23, 2024

Cineworld to close six UK cinemas in cost-cutting drive

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Cineworld has said it will close six venues across Britain as part of a plan to cut costs, as the debt-laden chain continues to struggle with the headwinds facing the cinema industry.

The affected sites will be Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon – Regent Circus.

In a statement, the company said it aimed to return to profitability and “ensure a sustainable long-term future for Cineworld in the UK”.

It was reported this month that the chain was considering closing 25 of its 100 cinemas as a result of its struggles with debt and the lasting impact of the Covid pandemic.

Cineworld said the six sites to close had become “commercially unviable” and that the decision to close them had been made “against a background of increasingly high and unsustainable operating costs”.

It said the restructuring plan would “enable it to address its lease portfolio and rental terms with landlords in the UK” as well as to seek further funding.

The company said it would consult employees at the six affected sites and offer redeployment to nearby sites to as many of them as possible.

It said the total number of affected sites would not be confirmed until the restructuring is approved by a court, though it added that, contrary to recent reports, no sites had been identified for closure other than the six announced on Saturday.

Founded in 1995, Cineworld operates more than 100 cinemas in Britain and Ireland and employs thousands of people.

After the acquisition of US chain Regal Entertainment in 2018, it became the second-largest cinema business in the world by number of screens.

In 2023, it tried to sell its businesses in the US, UK, and Ireland, but did not receive any acceptable offers. Later the same year, it entered administration and delisted from the London Stock Exchange, though continued to operate its cinemas as usual.

Recent years have been difficult for the whole cinema industry. Tim Richards, founder and chief executive of cinema operator Vue International, told the BBC this month that there were 35% fewer films released in 2022 than in the pre-pandemic era and 20% fewer in 2023.

By contrast, the period between 2017 and 2019 saw three consecutive box office world records set, he said.

The industry was also hit last year by the Hollywood writers’ and actors’ strike, which halted many film productions.

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