Cineworld, which owns the US theater chain Regal Cinemas, is declaring bankruptcy.
In a statement, Cineworld said, "Despite a gradual recovery of demand since re-opening 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."
It added that they are "taking proactive steps to ensure it has the balance sheet strength and flexibility to adapt to market conditions. This includes significant previously disclosed operational and financial initiatives to manage costs and enhance liquidity. The group believes these steps are required to optimize its ability to maximize enterprise value as part of the recovery in the cinema industry."
"In connection with these initiatives, the group remains in active discussions with various stakeholders and is evaluating various strategic options to both obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction," Cineworld said.
Cineworld had a loss of over $708 million by year-end of 2021, and a $3 billion loss in 2020, due mostly, of course to the pandemic. They are also considering filing an insolvency proceeding in the U.K.
