Cineworld to Close Six Cinemas in Cost-Cutting Move
In a bid to tackle its mounting debt, Cineworld has announced plans to close six cinemas in the UK. The decision comes as part of a major restructuring effort to save money and cut jobs within the company.
The affected cinemas, located in Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate, and Swindon – Regent Circus, are set to shut their doors in late September 2024 pending legal approval of the cost-cutting plans. Cineworld described these locations as “commercially unviable” in a statement released on Saturday.
The chain hopes that the restructuring plan will help return the business to profitability and ensure a sustainable long-term future for Cineworld in the UK. Staff at the cinemas earmarked for closure will be offered redeployment at nearby sites, and any abandoned sites will be taken over by rivals.
While the restructuring plan could see up to 25 UK cinemas close, Cineworld emphasized that this is not a bankruptcy process but rather a legal mechanism to make the company more efficient and profitable. The company’s cinemas outside the UK are unaffected by these changes.
Cineworld’s financial troubles stem from a multibillion-dollar debt burden that led to the company filing for Chapter 11 bankruptcy protection in 2022. After emerging from bankruptcy, Cineworld delisted from the London Stock Exchange and underwent a restructuring that involved exchanging debt for shares and injecting new funds from investors.
The company’s new leadership team, led by CEO Eduardo Acuna, is working to navigate Cineworld through these challenging times and secure its future in the industry. As the cinema chain continues to adapt to changing market conditions, the closure of these six cinemas marks a significant step in its cost-cutting efforts.