Cineworld Group, which owns Regal Cinemas in the United States, confirmed that filing for Chapter 11 bankruptcy protection is among the “strategic options” it is considering as the company grapples with lower revenues and a limited list of films.
The London-based company, the world’s second-largest theater chain, responded to the speculation with the following Wall Street Journal Report on Friday.
In a statement on Monday, Cineworld said Cineworld and Regal theaters “are open as usual and continue to welcome guests and members.” The statement read: “Strategic options by which Cineworld can achieve its restructuring objectives include a possible voluntary filing of Chapter 11 in the United States and related ancillary procedures in other jurisdictions as part of an orderly implementation process.”
“Cineworld is in discussions with many of its key stakeholders, including secured creditors and their legal and financial advisors,” the company said.
In an August 17 statement, Cineworld said it was considering unspecified strategic options as it struggles to overcome Hollywood’s summer void in its theaters.
After a strong recovery at the box office in the first half of 2022, major exhibitors are looking for a boost that could stagnate in the second half due to the absence of the big Hollywood marquees after the show. Top Gun: Maverick s Minions: The Rise of Gru.
Indebted Cineworld will receive bankruptcy protection to keep operations afloat, providing the capital needed to rebuild box office revenue from the COVID pandemic.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
