Cineworld Announces Restructuring Plans for UK Circuit, Including Closure of Six Theaters

Cineworld, the Regal-owner, is making major moves in the UK as it plans to close six movie theaters, cut jobs, and renegotiate rents as part of a court-directed restructuring. The company is looking to bring its business back to profitability and ensure a sustainable future in the UK market.

The restructuring plan is not a bankruptcy plan, but rather a legal process that allows for rent renegotiations and cost-cutting measures. Cineworld is aiming to lower rents to market levels and reset rents for marginal and loss-making cinemas to a level that will allow the company to return to profitability.

As part of the restructuring, Cineworld will be closing six “commercial unviable” theaters in Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate, and Swindon Circus. The company is beginning a consultation process with employees at these locations and will offer redeployment to as many as possible at nearby sites.

This move comes after a series of challenges for Cineworld, including theater shutdowns during the pandemic, entering and exiting Chapter 11 bankruptcy protection in the US, and the impact of the lack of blockbuster movies from key studio suppliers. Despite these challenges, Cineworld has been working to lighten its debt load and ride out the box office recovery.

Cineworld has enlisted the help of Alix Partners, who advised the company during its US corporate overhaul, to assist with the UK restructuring. The company is confident that these changes will provide a strong platform for future success in the UK market.