- Cineworld has confirmed it will close six UK sites as part of a restructuring plan
- The chain said the plans were to “restore the business to profitability”
- Cineworld is the world’s second-largest cinema chain, but debt and market changes pose challenges
Cineworld has confirmed it will close six sites across the UK as part of a restructuring plan.
The world’s second-largest cinema chain said it faced “increasingly high and unsustainable operating costs” as it begins a consultation process with employees at the affected sites.
One of the theatre chains affected by the growth of streaming services, delays in movie releases because of strikes by actors and writers, and rising living expenses for patrons is Cineworld, which also owns the Picturehouse chain.
A spokesperson for the business said: “We are implementing a Restructuring Plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.”
They added that the six sites it intends to close were “commercially unviable”, with the restructuring plan intended to bring the business back into profitability.
Which UK cinemas will close?
Cineworld has confirmed the following sites will close:
- Glasgow Parkhead
- Bedford
- Hinckley
- Loughborough
- Yate
- Swindon Circus
- Harrogate
What does it mean for staff?
Cineworld is beginning a consultation process with employees at the six affected cinemas.
A representative for the company said in a statement that employment are at risk but that it “will offer redeployment to as many of them as possible at nearby sites.”
In addition to closing the sites, the restructuring plan aims to lower rent at other locations in the UK, and in order to become profitable again, the company is looking for additional investment.
Why has Cineworld launched a restructuring process?
Cineworld was founded in 1995 in Stevenage. It began with the opening of its first cinema in that location and has since grown to become 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.
Then in 2018, the company acquired Regal Entertainment Group in 2018, which expanded its footprint in the United States, but significantly increased its debt burden.
