Cineworld announces plans to close six branches

It’s part of restructure plans for the firm

Cineworld has announced plans to shut six cinemas across the UK as part of major restructuring plans.

The business, which is part of the world’s second-largest cinema chain, has struggled since the Covid pandemic as audiences have failed to return to previous levels.

Against this backdrop, the organisation said it plans on closing sites in Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon Circus.

The move is designed to return the business to profitability, a statement said.

Cineworld, which also owns Picturehouse, entered administration in July 2023 – struggling with debt estimated to be almost £4 billion.

The company had been trying to find a buyer for some or all of its sites but, after failing to do so, announced plans to close the six sites it deemed “commercially unviable”.

PR representatives of the company denied media speculation that they had identified more sites for closure than the six listed.

They said Cineworld is starting a consultation process with employees at the six affected sites and will offer redeployment to as many of them as possible at sites nearby.

Cineworld said it also proposes to try to negotiate rent reductions “to market level” at some UK locations.

The restructuring plan still needs to get court approval but, while the process is ongoing, all Cineworld cinemas in the UK will continue to operate as normal until at least late September.

A Cineworld spokesperson said: “We are implementing a restructuring plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.”

Published: 27/07/2024 by Radio NewsHub

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