Is Cineworld closing down? Cinema chain with branch in Liverpool preparing to file for bankruptcy
The world’s second-biggest cinema is reportedly preparing for bankruptcy, according to the Wall Street Journal.
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After the Wall Street Journal announced the report, shares in the cinema company plummeted by two-thirds.
Here’s everything you need to know, including why Cineworld is struggling and what this means for Liverpool’s Cineworld.
Why is Cineworld preparing for bankruptcy?
The report by Wall Street Journal said that Cineworld had hired specialist lawyers and consultants to advise the bankruptcy procedure.
Cineworld group - which owns Picture House as well as more international cinema companies - has suggested that its problems can be attributed to poor post-pandemic recovery and the limited number of blockbusters that are being shown in its 100 cinemas across the country.
A spokesperson for the firm said: “These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”
The business has also struggled with debt over the last financial year with the company reportedly owing £4 billion. In 2021, the company reported a loss of £429 million.
What is Cineworld’s current share price?
Cineworld’s share price was initially hacked to almost half its value, following the Wall Street Journal report. However, this figure has continued to deteriorate and the company’s share price has plummeted to a record low of 81%.
Before the COVID-19 pandemic, Cineworld were trading at £1.97, they are now trading at just under two pence.
What does this mean for Liverpool’s Cineworld cinema?
As of yet, Cineworld has declined to comment on the future status of their cinemas. An official statement is expected once the company has officially declared for bankruptcy.
The company has stated that it “continues to welcome guests to its cinemas across its global markets as normal, without disruption.”
For more information about Cineworld preparing to file for bankruptcy, visit the National World website.