Nearly 20 additional Cineworld cinemas are facing the threat of closure next month amid crunch talks with landlords.
Sky News has learnt that the company has compiled a list of 18 sites across the UK which could shut before Christmas if deals are not reached with their owners.
If negotiations to keep them open fail, the closures would add to five already shut during the summer, taking the total to 23.
Cineworld recently secured court approval for a restructuring plan which imposed steep rent cuts on many of its cinemas’ landlords.
The controversial plan attracted opposition from a string of blue-chip landlords, including British Land and Land Securities, but won sufficient support from creditors to be pushed through.
The uncertainty over a further 18 sites contradicts the company’s assertion in August that only five sites would close and that reports that roughly 25 were at risk were “inaccurate”.
A spokesperson for Cineworld said: “We want to reassure our customers and staff that we have no plans to close any additional cinemas beyond the five already closed.
“However, there are 18 cinemas left within our estate where we are awaiting further communications from landlords regarding their intentions.
“We are pleased to confirm that none have served notice to date, and we remain hopeful that they will work with us to keep these cinemas open.”
Documents circulated as part of the restructuring plan process highlighted the fact that the company did not have sufficient funding to meet a quarterly rent bill on June 24 of £15.9m.
“Absent this funding, the UK Group would have been insolvent on a cashflow basis,” they said.
Other cinema operators are now poised to step in to take over some of Cineworld’s other sites.
The company trades from more than 100 locations in Britain, including at the Picturehouse chain, and employs thousands of people.
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Cineworld grew under the leadership of the Greidinger family into a global giant of the industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years earlier.
Its multibillion dollar debt mountain led it into crisis, though, and forced the company into Chapter 11 bankruptcy protection in 2022.
It delisted from the London Stock Exchange in August 2023, having seen its share price collapse amid fears for its survival.
Cineworld also operates in central and Eastern Europe, Israel and the US.
Source : Sky News
