Cineworld in talks with major landlords over closure plans
Embattled cinema chain Cineworld is in talks with some of the UK’s largest landlords over restructuring plans which could see it close a quarter of its estate.
Commercial landlords such as Landsec and Legal & General – which own around 30 Cineworld venues between them – are currently engaged in talks with the cinema operator, Sky News has reported.
City sources told Sky News that a date had been set for a hearing at which a majority of the cinema chain’s creditors would need to approve Cineworld’s proposals to close around 25 sites, with rent reductions being sought at a further 50.
Some landlords are said to be in opposition to the proposals, however it is unclear whether a sufficient amount will be able to block the restructuring plan.
Cineworld – which trades from over 100 sites nationwide – had initially held talks with prospective buyers about a potential sale of the business, but has since switched its focus to a restructuring process.
Should a sufficient number of landlords refuse to agree with the proposals, rival cinema chains are expected to take over some of Cineworld’s sites.
The cinema chain delisted from the London Stock Exchange last August, after its share price plummeted amid fears for its survival. This came following an administration process which saw Cineworld’s shareholders miss out on any recovery.