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UK exhibition insiders have given a mixed reaction to reports controversial former Cineworld boss Mooky Greidinger is hoping to launch a new cinema operator in the UK and take over some Cineworld sites.
Greidinger’s potential return – first reported in The Sunday Times this weekend – comes with the beleaguered exhibition giant in the midst of an aggressive restructuring plan that will potentially see many of its landlords facing savage rent cuts.
It has been widely reported US hedge fund Goldentree is leading the consortium behind the Cineworld UK restructure, which has already seen six cinemas close.
Greidinger is said to have flown into the UK in recent weeks to meet with some of the landlords and present his alternative plans.
He and his management team left the debt-laden exhibition giant in the summer of 2023, securing a reported $35m payout just as the company was about to emerge from Chapter 11 bankruptcy proceedings in the US. He was believed to have signed a year-long non-compete agreement but it is understood that agreement has now expired.
”[Greidinger] has got the expertise and he has apparently got the financial clout to carry this off in a way that will probably benefit landlords,” said John Sullivan, founder of Backlot Cinema and co-founder of The Big Picture and The Light Cinemas, of Greidinger’s possible return.
“In a remarkable turn of events, he is now appearing to be the white knight. He is a tough negotiator but the landlords trust his word.”
Others were not so sure.
“The Sunday Times article was sensationalist in the extreme. The most [Greidinger] could do is come in and grab a couple of sites and he doesn’t have a cost base to run those; he doesn’t have people,” one source told Screen.
Greidinger remains a highly divisive figure. Some admire him for his aggressive attempts at taking Cineworld into the FTSE 100 and turning the company into one of the largest exhibitors in the world. Others accuse him of overpaying for assets, saddling Cineworld with debt and tarnishing the legacy of Cineworld founder Steve Wiener, who established the business in 1995 and built it up to become the top cinema chain in the UK.
“Cineworld, as far as I am aware, is not for sale today. It’s not a question of going in and buying these sites [as] they’re not for sale,” commented Tim Richards, founder and CEO of Vue Entertainment.
Richards confirmed Vue had “run very hard a year ago trying to buy all of Cineworld” but had not pulled off the deal. “We spent two months trying to purchase the entire company, but I am not sure it was genuinely ever for sale. It felt more like a Chapter 11-related process.”
However, the Richards said he does anticipate there will be a shake-up in the sector.
“The future of the industry is consolidation [but] I don’t think that is going to start in earnest for another 12 to 18 months. Everyone is cautious about what they’re spending on right now and money is still tight.”
Vue is continuing to invest in refurbishments on its own sites, including rolling out recliner seats, new sound systems and state-of-the-art laser projectors.
“That’s our focus. Our investment in new sites and refurbishing our existing estate has helped us become the number one operator in the country by box office and attendance,” Richards said.
The CEO also spoke of Vue’s efforts to work with landlords commercially and respectfully. “We’ve been through a very difficult time and we’ve worked very closely with our landlords. Yes, we have had some difficult discussions but we’ve remained friends and gone out for a beer after. We are looking at this on a long-term basis of growing and working with our landlords.”
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