Cineworld was busy assuring the industry it was “business as usual” after it emerged the world’s second largest exhibition chain and owner of Regal in the US was expected to file for bankruptcy.
All eyes are on the theatre giant, which is saddled with debt, faces a heavy fine related to a dispute with its Canadian Cineplex circuit, and earlier in the week said admissions had fallen short of expectations since the chain reopened in April 2021.
“All of our Cineworld and Regal theatres are open for business as usual, and we continue to welcome our guests and members to our cinemas globally,” Cineworld said in a statement to press, adding that it was exploring options with stakeholders to achieve greater liquidity and a potential restructure.
One of these options could include ”a possible voluntary Chapter 11 filing in the United States and associated ancillary proceedings in other jurisdictions as part of an orderly implementation process.”
This would allow Cineworld to stay in business whilst it restructures its obligations to creditors.
Shares in the company fell 60% after the bankruptcy report appeared in The Wall Street Journal last week.
However in spite of the gloomy outlook some analysts have advised the chain will not close, although it is expected to restructure. One opined that Cineworld might sell Regal, a scenario that has been shared in the past year by sources in the US exhibition and distribution circles.
Theatre executives are bracing for a lean couple of months after a strong summer led by Top Gun: Maverick which stands at $683m in North America to rank sixth in the all-time box office pantheon. The film has taken more than $1.3bn worldwide.
Thor: Love And Thunder has amassed more than $325m in North America and more than $720m globally, while Doctor Strange In The Multiverse Of Madness has grossed closed to $1bn globally, and Minions: The Rise Of Gru stands has crossed $800m worldwide.
A24 delivered one of the counterprogramming hits of the summer when SXSW fantasy sci-fi adventure premiere Everything Everywhere All At Once starring Michelle Yeoh crossed $70m In the US and $100m worldwide.
The next anticipated tentpole is Dwayne Johnson DC adaptation Black Adam on October 21, followed by Wakanda Forever on November 11.
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