Cineworld to 'close 25 sites and cut hundreds of jobs' in major restructuring plan
It is not yet known what Cineworld locations could be affected by the planned restructure. Cineworld currently operates in locations on Parnell Street in Dublin and in the SSE Arena in Belfast
Cineworld is reportedly set to announce a number closures and hundreds of job cuts in the UK and Ireland as part of a major restructuring plan.
Sky News reports that the cinema chain will publish details of the plan on Friday. According to its city sources, around 25 Cineworld sites will shut down later this summer, however, around half a dozen could close their doors "immediately". A further 50 sites will enter into discussions on rent reductions.
The exact number of potential job losses is not yet clear but sources say it could be at "least in the hundreds". If the plan is approved, 25 cinema sites will be unaffected. However, if enough landlords refuse to agree to the new let terms, the 50 Cineworld complexes up for rent renegotiation could also be at risk of closure. Cineworld initially went into talks to sell the business, but has now switched to a "formal restructuring" process instead and is being advised by AlixPartners.
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It is expected that other cinema operators could step in and take over some of Cineworld's closed sites. It is not yet known what Cineworld locations could be affected. Cineworld currently operates in locations on Parnell Street in Dublin and in the SSE Arena in Belfast.
The cinema chain has over 100 sites in the UK and the Republic of Ireland - which operate under the Cineworld and Picturehouse brands - while globally, the chain has around 750 sites. Alongside other cinema chains, Cineworld was hit hard by the Covid-19 pandemic and the lockdowns which were introduced. As well as this, Cineworld faced the added pressure of having to compete with streaming services.
The chain built up a multi-billion dollar debt which led it into into financial turmoil and forced the company to file for a Chapter 11 bankruptcy protection in the US back in 2022. The group was listed on the London Stock Exchange until last year, when it was taken over by investors.
At the time, Cineworld stressed that the move would not impact its UK and Ireland operations for the holding company. Cineworld has been approached for comment.
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