A major cinema chain has announced several further closures as part of a major restructuring plan.
Cineworld, which has been facing financial struggles pushed ahead with its plans in September after four firms that form part of its UK arm told the High Court they risked going into administration.
This led to the chain closing its Glasgow Parkhead, Bedford, Loughborough, Yate and Swindon Regent Circus branches.
Cineworld has since issued a further update, announcing the completion of its restructuring plans whilst also announcing that six more branches would be permanently shuttered after landlords decided to reclaim the properties.
These include sites in Castleford, Leigh, Middlesbrough, Northampton, Poole and Weymouth, reports The Mirror.
The Weymouth branch will close on December 30, with the remaining five sites shutting on January 19, according to the outlet.
Cineworld says it has gained access to £40m in liquidity as a result of the restructure and plans to pump as much as £35m into refurbishing its existing sites.
The High Court case involved Cine-UK Ltd, Cineworld Cinemas Ltd, Cineworld Cinema Properties Ltd and Cineworld Estates Ltd, all of which are parts of Cineworld’s UK arm, the Mirror reports.
At the time, the firms stated their intention to renegotiate leases for some sites, of which there are more than 100, to secure rent reductions. They are part of a larger group that operates cinemas in 10 countries.
The latest announcement comes after Cineworld saw sales drop dramatically, made worse by the pandemic and the lockdowns that followed, and is having to compete with the boom in streaming platforms.
According to Tom Smith KC, the barrister associated with the court proceedings, Cineworld was also “severely adversely impacted” by industrial action involving screen actors and writers last year.
Javier Sotomayor, president of Cineworld International, said: “The successful completion of our Restructuring Plan, achieved with the crucial support of our landlords, protects thousands of jobs across the UK and provides us with the financial stability to continue investing in delivering extraordinary experiences for our valued customers.
“This milestone sets the stage for a brighter future, enabling Cineworld to continue sharing joy in communities across the UK for many years to come.”
Cineworld has been approached for comment via email.
Full list of new closures announced by Cineworld
- Castleford
- Leigh
- Middlesbrough
- Northampton
- Poole
- Weymouth
