Cineworld to close the curtains on 25 sites in restructuring plan
Cineworld is set to announce a restructuring plan which could see the closure of around 25 of its sites, cutting the size of the cinema chain’s UK estate by a quarter.
Sky News has reported that the operator – which trades from over 100 sites in the UK – will release a restructuring plan on Friday.
City sources said six Cineworld cinemas would begin a closure process immediately and close for good this summer.
The operator has been in talks with some of the UK’s largest landlords – including Landsec and Legal & General – over restructuring plans.
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 had initially held talks with prospective buyers about a potential sale of the business, but has since switched its focus to a restructuring process.
The majority of the cinema chain’s creditors would need to approve proposals to close around 25 sites, with rent reductions being sought at a further 50. 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 miss out on any recovery.