Regal Cinemas Parent Company Cineworld Files For Bankruptcy In U.S.

Topline

Cineworld, the parent company of Regal Cinemas and the second-largest largest movie theater chain in the world, filed for Chapter 11 bankruptcy in the U.S. on Wednesday, after the theater industry failed to fully bounce back from the pandemic.

General view of Regal Cinemas’ flagship L.A. movie theater, Regal LA Live & 4DX on January 05, 2022 … [+] in Los Angeles, California.

GC Images

Key Facts

The company expects the move will “significantly reduce the group’s debt, strengthen its balance sheet and provide the financial strength and flexibility to accelerate, and capitalize on, Cineworld’s strategy in the cinema industry,” it said in a statement.

Cineworld, which operates Regal Cinemas in the U.S. and Cineworld and Picturehouse in the U.K., expects to emerge from Chapter 11 in the first quarter of 2023.

It’s likely that some Regal Cinemas will close or be consolidated as a result, Deadline reported.

Cineworld said it secured $1.94 billion in loans to fund the restructuring.

Key Background

Cineworld operates about 750 theaters in 10 countries. In 2018, it purchased Regal Cinemas for $3.6 billion. A Canadian court last year awarded Cineplex $970 million in damages after Cineworld chose to not take over the company. Cineworld signaled last month that it was on the verge of bankruptcy, which was first reported by the Wall Street Journal. In person theater attendance hasn’t fully returned to its pre-pandemic levels. Studios are juggling with how to best reach audiences, and are releasing some movies on streaming at the same time, or shortly after their theatrical releases, leaving many unmotivated to purchase movie tickets. Production slates were also greatly affected by the pandemic, leaving theaters with a lack of blockbuster inventory to screen.

Topline

Key Facts

Key Background

Further Reading