Cineworld set to file for bankruptcy as company faces collapse

Global cinema chain Cineworld is set to file for bankruptcy, according to new reports today.

The Cineworld Group is likely to file for bankruptcy within weeks, as an ‘insider’ has revealed the company is set to file a chapter 11 petition in the US.

Cineworld, the second largest cinema business in the world, is also considering filing an insolvency proceeding in the UK, as per the Wall Street Journal.

Cineworld

The company has a massive 751 sites with 9,000 screens throughout 10 countries, with bosses now assessing options to shore up finances.

The cinema chain failed to get enough film fans through the doors after lockdown, with the company’s market value more than halving as it faces debt of more than £4 billion after the pandemic.

According to a statement: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.

“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”

The latest reports say that Cineworld is currently ‘negotiating with its lenders to fund the costs of the bankruptcy process’.

While the company was threatened with bankruptcy back in 2020 during lockdown, it was saved by a lifeline from creditors.