Financial pressure

Cineworld aiming to close a quarter of its cinemas

Cineworld has been fighting competition from streaming services

Cineworld intends to close a quarter of its UK cinemas as it comes under intense pressure from streaming services, according to City speculation.

The chain currently operates from about 100 locations but is looking to scale back as part of a review of strategy.

Cineworld went private last year as it underwent a major financial restructuring and as well as shutting outlets it will aim to renegotiate rents for about 50 other cinemas.

Sky News reported that the restructuring proposals were expected to be formally outlined to creditors including landlords in the coming weeks. It is understood that financial services firm AlixPartners is acting as an adviser during the process.

Cineworld was founded in 1995 and grew into the world’s second-largest cinema chain (after AMC Theatres), with 9,139 screens across 747 sites in 10 countries.

In 2012, it acquired the Picturehouse chain, which allowed it to diversify its offerings and appeal to a broader demographic.

In 2018, the company acquired Regal Entertainment Group in 2018, which expanded its footprint in the US, but significantly increased its debt burden and placed financial strain on the company,

It was subsequently taken over by investors and hedge funds who de-listed it from the London Stock Exchange..

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