Movie Theater Chain Going Out of Business
Movie theater chain, Cineworld Group, is on the brink of collapse and may be forced to close all of its locations in the United States and United Kingdom as a result of the coronavirus pandemic. The company announced in October that it had “no choice” but to temporarily close its theaters due to decreased ticket sales and government restrictions on movie theaters.
Cineworld operates over 930 theaters worldwide, including 536 locations in the U.S., where it owns and operates Regal Cinemas. It is the second-largest movie theater chain in the world behind AMC Theatres. In addition to Regal Cinemas, Cineworld also runs Cineworld Cinemas, Picturehouse, and Cinema City branded theaters.
The company has been struggling since March when it was forced to close all of its theaters due to government shutdowns related to the pandemic. Since then, Cineworld has been unable to make up for lost revenue and has been unable to access emergency funding from banks or investors. As a result, it was forced to announce plans for a potential restructuring or sale in October.
Cineworld’s financial woes have been compounded by the fact that many movie studios have delayed or canceled major releases due to the pandemic. This has made it difficult for movie theaters around the world to attract customers back into their theaters since they are not able to show new movies.
It is unclear what will happen with Cineworld’s theaters if they do go out of business. The company may be able to find a buyer who is willing to keep some of its properties open, but it is likely that many locations will be closed permanently.
Conclusion:
The future of Cineworld Group is uncertain as it continues to struggle with decreased ticket sales and lack of access to emergency funding due to the coronavirus pandemic. If no buyer can be found for the company’s assets, then all of its locations in both the U. and U.K. could potentially close permanently.