Reported now on Sky News – The WSJ Article is below
**Regal Cinemas Owner Cineworld Prepares for Bankruptcy Filing**
Theater admissions aren’t recovering fast enough for the world’s second-largest cinema chain to avert insolvency
By Alexander Gladstone Aug. 19, 2022 8:09 am ET
Cineworld Group Plc, the owner of Regal Cinemas, is preparing to file for bankruptcy within weeks after struggling to rebuild attendance from pandemic lows, according to people familiar with the matter.
The British cinema company has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process, these people said. Cineworld is expected to file a chapter 11 petition in the U.S. and is considering filing an insolvency proceeding in the U.K., they said.
Cineworld said on Wednesday that despite a gradual recovery in attendance since reopening theaters last year, recent admissions have lagged below expectations due to a limited film slate. The company is evaluating strategic options to generate liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction, it said. Any such deleveraging likely will be highly dilutive to shareholders, Cineworld said.
The company is negotiating with its lenders to fund the costs of the bankruptcy process, according to a person familiar. Cineworld and Kirkland didn’t immediately respond to requests for comment. AlixPartners declined to comment.
The London-based chain narrowly escaped bankruptcy in 2020 after landing a lifeline from creditors while its nearly 800 theaters were shut due to Covid-19 restrictions.
Cineworld’s biggest competitor, AMC Entertainment Holdings Inc. has faced similar challenges of muted attendance and a limited supply of new releases, but AMC managed to raise more than $2.2 billion of equity to stay afloat through the pandemic, largely by tapping into individual investors who made it a meme stock.
In an interview with The Wall Street Journal in October 2021, Cineworld Chief Executive Mooky Greidinger said he was happy for AMC and that “not every stock in the U.S. market is a meme stock.”
Cineworld was founded in the U.K. in 1995 and acquired the Regal chain in 2018 for $3.6 billion. It is the second-largest cinema chain in the world behind AMC.
I’m going all in 🚀🚀🚀🚀
It’s not shocking when their popcorn and ~~tango ice blast~~ slushie costed a arm and a leg.
Sad for all employees however, its a difficult time rn 🙁
If 5 of us buy a large popcorn we could save the company
In all seriousness though this is awful news for the industry, I hope they can find a solution for the sake of the employees at least
Not surprised at all. Cineworld has went right downhill since the pandemic. The staff don’t check the cinemas, letting everyone do what they want to disturb the screening by talking and going on their phones etc. Along with it being expensive (VUE is cheaper) and movies being online not long after they come out. it was bound to happen sooner or later
Not totally surprised by this. With prices now in excess of £15 a ticket and cinema etiquette at an all time low, going to cinema just isn’t the enjoyable experience it once was.
When I went to see The Northman earlier this year, there were people talking constantly and just browsing on their phones. Staff don’t do anyting anymore. Why even bother going if you’re going to act so inconsiderate.
Edit: okay, I get it. A lot of you don’t live in London and cinema tickets are cheaper in the Norf. It’s still way too expensive for what it is.
In the last 12 months there’s has been 3 major marvel releases, a new batman film, a new jurassic world film, and plenty of other great films with A list actors released so the excuse that there aren’t enough films coming out is a poor one.
I worked for cineworld for 7 years and it is a company that 1. Treats its staff horrifically and 2. Is run by people who don’t have the first clue about running a cinema chain.
[removed]
No idea how much the monthly pass costs these days but back in 6th form it was well worth it if you went twice weekly. The snacks were always extortionate though and there were always places with better screens and vibe.
Well I’m out of work now.
Obviously pales in comparison to the fate of all their employees but I just signed up for their Unlimited card thing. Been ages since I could afford it and figured I’d treat myself. Plus they are the only decent cinema in my area. Gutted.
I’d still go to the cinema if they were run like cinemas and not day care centres.
Sell off the picknmix to pay the debts.
[deleted]
I imagine Everyman has eaten into market share big time on top of the pandemic hit
I have a big ass TV, surround sound and a million sources to watch from. I’ve got a list of movies to watch as long as my arm, and by the time I’ve watched those, anything at the cinema now I want to watch will hopefully be available elsewhere.
I’ll go to see thing I desperately want to see (anything Godzilla related), but I couldn’t care less about others. Many of the franchises I used to enjoy have been milked to the point that I have no interest in new sequels.
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My local cinema is Cineworld. It’s just had a pretty big refurbishment and all in all, is pretty good. The problem is, there’s an Everyman 20 minutes away, which is infinitely better and Cineworld is now just as expensive.
I’ve taken the kids a couple of times this year, but, personally, there hasn’t been a single film I’d pay to go and watch at the cinema.
I absolutely love the cinema. But to be honest I rarely go these days unless I can guarantee a close to empty screen. People just don’t know how to behave. You get perfectly normal people just talking during the film, like that’s ok. Maddening.
I think cinema as a whole will go the way of blockbuster, people have 40″ or more flat screen 4k tvs at home now, with more things to see than you could possibly watch In a lifetime at their fingertips.
Free from interuptions, eat and drink what you want, able to pause it when you need a pish too.
The one and only thing that kept cinemas afloat for as long as they have, was that their exclusivity when it came to showing new releases – so impatient people would rush out to the cinema instead of waiting 6 months to see it at home.
Covid changed all that, I think the vast, vast majority of the public would rather watch new releases in their own comfort now.
I don’t go to the cinema anymore. People on their phones at full brightness sort of ruins it.
I mean, you’ve paid to see a film and instead you want to twat around on instagram with your phone at full brightness? Go to smeg.
What? They literally just opened a brand new cinema 2-3 weeks ago near me.
If it wasn’t about £40 to go see a film for 2 people then I would go more, but unfortunately people don’t wanna spend that kinda money when they can just stream the movie at home once it comes out. Not surprising tbh..
They blamed a “weaker film slate” for their woes earlier this week. Which I thought was bollocks. Given the box office success of some recent releases.
They owe a lot of money following a judgement after it jilted former acquisition target Cineplex.
They also owe former shareholders of Regal, a company it bought, cash too.
Cineworld has been badly run for a long time.
If you’re ever in Sheffield I highly recommend “The Showroom cinema,” if you’re into B&W Icelandic language films about Palestinian lesbians coming to terms to things in dilapidated tower blocks. It’s got a great bar and remains steadily packed most evenings.
Incidentally I had the worst date of my life there one rainy November evening, watching a documentary about Joy Division.
Well Vue charges £5 a film, £6 on a peak time viewing (around 5pm Saturdays and Sundays).
Cineworld is the exact same thing for 3 times the price.
No shit it’s tanking :/
Shame really, their unlimited card was great value if you watched more than one film a month.
The one at the O2 in London is unnecessarily frikken massive.
£12 to go and see a movie that people will talk through, teenagers will just be general doucebags through and will most likely be on streaming platforms in 6-12 months where it can be watched in a quiet living room on a 4k TV.
Cost of going aside, the visual quality nowadays is worse than what can be had at home. Cinema projection, at least in my local cinemas is quite frankly shite. I’d rather wait until a home release and watch it on my OLED.
I work at a Cineworld and this doesn’t surprise me in the least. Over the last few weeks it’s been absolutely dead, there’s literally been hours without customers coming in.
It’s located in an area that’s not exactly affluent, but when it opened a few years ago they used the London price tiers for its first few months, instantly destroying any chance of building a loyal customer base. They realised their mistake pretty quickly and reduced it to the lowest price tier. Did they communicate this at all through marketing? Absolutely not. People still come in expecting to pay £13 a ticket when it’s actually £6, the cheapest in the city.
Oh and I forgot to mention there’s already four cinemas in the city that are very well established, yet Cineworld still did no marketing at all after their disastrous opening.
The programming is pretty dire too, Sonic 2 and Jurrasic World are still being shown, even though nobody turns up. However, when Robocop re-released for its anniversary and Get Out came back in the run-up to Nope, it was packed full of excited patrons. Have they considered releasing other classic films? Fuck no! More empty screens showing months old franchise films!
The managers are in complete denial that we’re failing. They insist we open multiple popcorn warmers because “it’s the summer holidays” and it’s busy. It is not. We close it the minute they go home.
Obviously we’re just one shitty branch, but if the others are operating like we are, I’m not surprised at this news.
Jesus. Cineworld slagging session on here! Worked for Cineworld for around 14 years and left due to job security during Covid. Loved working for them. Don’t get me wrong, I hear some of the complaints being made here and these issues happen in majority of cinemas (and retail) regardless. However, what I will say is that Cineworld’s downfall is Mooky (the majority shareholder). He wanted Cineworld to be the biggest cinema chain in the world; doing this meant purchasing huge chains (such as Regal) and acquiring all their debt along with it. They then tried to purchase Cineplex (I think? The biggest chain in Canada) and then pulled out (due to global pandemic) and were subsequently [sued](https://www.forbes.com/sites/joshwilson/2021/12/15/cineplex-awarded-nearly-1-billion-in-damages-from-cineworld-after-lawsuit-victory/amp/) by them (for over 1bn dollars) which has just finished them off.
Cineworld also loaned money from banks and would secure its re-payments by the success of future releases. I believe this happened when James Bond was pushed back and Cineworld were reliant on its ticket sales to balance some of its books.
I’m no expert and am probably wrong, but these are the things I read on the net during Covid and after, as I was a bit paranoid about job security etc.
All in all, Mooky ruined a really special ‘thing’ by trying to go too big. Cineworld was full of, not only great customers, but the very best friends and colleagues, which all worked extremely hard.
31 comments
Reported now on Sky News – The WSJ Article is below
**Regal Cinemas Owner Cineworld Prepares for Bankruptcy Filing**
Theater admissions aren’t recovering fast enough for the world’s second-largest cinema chain to avert insolvency
By Alexander Gladstone Aug. 19, 2022 8:09 am ET
Cineworld Group Plc, the owner of Regal Cinemas, is preparing to file for bankruptcy within weeks after struggling to rebuild attendance from pandemic lows, according to people familiar with the matter.
The British cinema company has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process, these people said. Cineworld is expected to file a chapter 11 petition in the U.S. and is considering filing an insolvency proceeding in the U.K., they said.
Cineworld said on Wednesday that despite a gradual recovery in attendance since reopening theaters last year, recent admissions have lagged below expectations due to a limited film slate. The company is evaluating strategic options to generate liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction, it said. Any such deleveraging likely will be highly dilutive to shareholders, Cineworld said.
The company is negotiating with its lenders to fund the costs of the bankruptcy process, according to a person familiar. Cineworld and Kirkland didn’t immediately respond to requests for comment. AlixPartners declined to comment.
The London-based chain narrowly escaped bankruptcy in 2020 after landing a lifeline from creditors while its nearly 800 theaters were shut due to Covid-19 restrictions.
Cineworld’s biggest competitor, AMC Entertainment Holdings Inc. has faced similar challenges of muted attendance and a limited supply of new releases, but AMC managed to raise more than $2.2 billion of equity to stay afloat through the pandemic, largely by tapping into individual investors who made it a meme stock.
In an interview with The Wall Street Journal in October 2021, Cineworld Chief Executive Mooky Greidinger said he was happy for AMC and that “not every stock in the U.S. market is a meme stock.”
Cineworld was founded in the U.K. in 1995 and acquired the Regal chain in 2018 for $3.6 billion. It is the second-largest cinema chain in the world behind AMC.
I’m going all in 🚀🚀🚀🚀
It’s not shocking when their popcorn and ~~tango ice blast~~ slushie costed a arm and a leg.
Sad for all employees however, its a difficult time rn 🙁
If 5 of us buy a large popcorn we could save the company
In all seriousness though this is awful news for the industry, I hope they can find a solution for the sake of the employees at least
Not surprised at all. Cineworld has went right downhill since the pandemic. The staff don’t check the cinemas, letting everyone do what they want to disturb the screening by talking and going on their phones etc. Along with it being expensive (VUE is cheaper) and movies being online not long after they come out. it was bound to happen sooner or later
Not totally surprised by this. With prices now in excess of £15 a ticket and cinema etiquette at an all time low, going to cinema just isn’t the enjoyable experience it once was.
When I went to see The Northman earlier this year, there were people talking constantly and just browsing on their phones. Staff don’t do anyting anymore. Why even bother going if you’re going to act so inconsiderate.
Joined the [Prince Charles Cinema](https://princecharlescinema.com/PrinceCharlesCinema.dll/Home) a few months ago and it’s a completely different experience. Cheap tickets, attentive staff and polite audiences. So refreshing.
Edit: okay, I get it. A lot of you don’t live in London and cinema tickets are cheaper in the Norf. It’s still way too expensive for what it is.
In the last 12 months there’s has been 3 major marvel releases, a new batman film, a new jurassic world film, and plenty of other great films with A list actors released so the excuse that there aren’t enough films coming out is a poor one.
I worked for cineworld for 7 years and it is a company that 1. Treats its staff horrifically and 2. Is run by people who don’t have the first clue about running a cinema chain.
[removed]
No idea how much the monthly pass costs these days but back in 6th form it was well worth it if you went twice weekly. The snacks were always extortionate though and there were always places with better screens and vibe.
Well I’m out of work now.
Obviously pales in comparison to the fate of all their employees but I just signed up for their Unlimited card thing. Been ages since I could afford it and figured I’d treat myself. Plus they are the only decent cinema in my area. Gutted.
I’d still go to the cinema if they were run like cinemas and not day care centres.
Sell off the picknmix to pay the debts.
[deleted]
I imagine Everyman has eaten into market share big time on top of the pandemic hit
I have a big ass TV, surround sound and a million sources to watch from. I’ve got a list of movies to watch as long as my arm, and by the time I’ve watched those, anything at the cinema now I want to watch will hopefully be available elsewhere.
I’ll go to see thing I desperately want to see (anything Godzilla related), but I couldn’t care less about others. Many of the franchises I used to enjoy have been milked to the point that I have no interest in new sequels.
[deleted]
My local cinema is Cineworld. It’s just had a pretty big refurbishment and all in all, is pretty good. The problem is, there’s an Everyman 20 minutes away, which is infinitely better and Cineworld is now just as expensive.
I’ve taken the kids a couple of times this year, but, personally, there hasn’t been a single film I’d pay to go and watch at the cinema.
I absolutely love the cinema. But to be honest I rarely go these days unless I can guarantee a close to empty screen. People just don’t know how to behave. You get perfectly normal people just talking during the film, like that’s ok. Maddening.
I think cinema as a whole will go the way of blockbuster, people have 40″ or more flat screen 4k tvs at home now, with more things to see than you could possibly watch In a lifetime at their fingertips.
Free from interuptions, eat and drink what you want, able to pause it when you need a pish too.
The one and only thing that kept cinemas afloat for as long as they have, was that their exclusivity when it came to showing new releases – so impatient people would rush out to the cinema instead of waiting 6 months to see it at home.
Covid changed all that, I think the vast, vast majority of the public would rather watch new releases in their own comfort now.
I don’t go to the cinema anymore. People on their phones at full brightness sort of ruins it.
I mean, you’ve paid to see a film and instead you want to twat around on instagram with your phone at full brightness? Go to smeg.
What? They literally just opened a brand new cinema 2-3 weeks ago near me.
If it wasn’t about £40 to go see a film for 2 people then I would go more, but unfortunately people don’t wanna spend that kinda money when they can just stream the movie at home once it comes out. Not surprising tbh..
They blamed a “weaker film slate” for their woes earlier this week. Which I thought was bollocks. Given the box office success of some recent releases.
They owe a lot of money following a judgement after it jilted former acquisition target Cineplex.
They also owe former shareholders of Regal, a company it bought, cash too.
Cineworld has been badly run for a long time.
If you’re ever in Sheffield I highly recommend “The Showroom cinema,” if you’re into B&W Icelandic language films about Palestinian lesbians coming to terms to things in dilapidated tower blocks. It’s got a great bar and remains steadily packed most evenings.
Incidentally I had the worst date of my life there one rainy November evening, watching a documentary about Joy Division.
Well Vue charges £5 a film, £6 on a peak time viewing (around 5pm Saturdays and Sundays).
Cineworld is the exact same thing for 3 times the price.
No shit it’s tanking :/
Shame really, their unlimited card was great value if you watched more than one film a month.
The one at the O2 in London is unnecessarily frikken massive.
£12 to go and see a movie that people will talk through, teenagers will just be general doucebags through and will most likely be on streaming platforms in 6-12 months where it can be watched in a quiet living room on a 4k TV.
Cost of going aside, the visual quality nowadays is worse than what can be had at home. Cinema projection, at least in my local cinemas is quite frankly shite. I’d rather wait until a home release and watch it on my OLED.
I work at a Cineworld and this doesn’t surprise me in the least. Over the last few weeks it’s been absolutely dead, there’s literally been hours without customers coming in.
It’s located in an area that’s not exactly affluent, but when it opened a few years ago they used the London price tiers for its first few months, instantly destroying any chance of building a loyal customer base. They realised their mistake pretty quickly and reduced it to the lowest price tier. Did they communicate this at all through marketing? Absolutely not. People still come in expecting to pay £13 a ticket when it’s actually £6, the cheapest in the city.
Oh and I forgot to mention there’s already four cinemas in the city that are very well established, yet Cineworld still did no marketing at all after their disastrous opening.
The programming is pretty dire too, Sonic 2 and Jurrasic World are still being shown, even though nobody turns up. However, when Robocop re-released for its anniversary and Get Out came back in the run-up to Nope, it was packed full of excited patrons. Have they considered releasing other classic films? Fuck no! More empty screens showing months old franchise films!
The managers are in complete denial that we’re failing. They insist we open multiple popcorn warmers because “it’s the summer holidays” and it’s busy. It is not. We close it the minute they go home.
Obviously we’re just one shitty branch, but if the others are operating like we are, I’m not surprised at this news.
Jesus. Cineworld slagging session on here! Worked for Cineworld for around 14 years and left due to job security during Covid. Loved working for them. Don’t get me wrong, I hear some of the complaints being made here and these issues happen in majority of cinemas (and retail) regardless. However, what I will say is that Cineworld’s downfall is Mooky (the majority shareholder). He wanted Cineworld to be the biggest cinema chain in the world; doing this meant purchasing huge chains (such as Regal) and acquiring all their debt along with it. They then tried to purchase Cineplex (I think? The biggest chain in Canada) and then pulled out (due to global pandemic) and were subsequently [sued](https://www.forbes.com/sites/joshwilson/2021/12/15/cineplex-awarded-nearly-1-billion-in-damages-from-cineworld-after-lawsuit-victory/amp/) by them (for over 1bn dollars) which has just finished them off.
Cineworld also loaned money from banks and would secure its re-payments by the success of future releases. I believe this happened when James Bond was pushed back and Cineworld were reliant on its ticket sales to balance some of its books.
I’m no expert and am probably wrong, but these are the things I read on the net during Covid and after, as I was a bit paranoid about job security etc.
All in all, Mooky ruined a really special ‘thing’ by trying to go too big. Cineworld was full of, not only great customers, but the very best friends and colleagues, which all worked extremely hard.