The company – which also owns the Picturehouse chain in the UK – had been trying to find a buyer for some or all of its UK sites, but after failing to do so has announced plans to close six sites deemed to be “commercially unviable”.
PR representatives for Cineworld said affected staff had been contacted to begin a consultation process and that they hoped to be able to redeploy as many people as possible.
They strongly denied media reports that a further 19 cinemas could close, or that redundancies “could run into the hundreds”, as widely reported elsewhere.
Cineworld will also enter into negotiations with landlords at an unspecified number of sites to try to reduce costs. This could take the form of reduced rents.
The company is part of the Regal Cineworld Group, and when the UK operation entered administration, Cineworld employed more than 28,000 staff across 751 sites globally, with 128 locations in the UK and Ireland. Its business operations outside the UK are not affected.
In 2019, the last full year before the pandemic hit, Cineworld reported sales of $4.4bn.
While audiences started returning after the pandemic, the organisation said in 2022 that it expected its admission for 2023 and 2024 to remain below pre-pandemic levels.
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.”
The restructuring plans have to gain court approval. While the process is ongoing, all of Cineworld’s UK operations will continue until at least late September.
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