Cineworld Announces Further Cinema Closures Amid Restructuring Plan
Cineworld has revealed plans to close an additional six cinemas, bringing the total number of closures this year to 11 as part of the chain’s ongoing restructuring programme.
The cinema giant had already shut down its branches in Glasgow Parkhead, Bedford, Loughborough, Yate, and Swindon Regent Circus earlier this year. Now, it has confirmed the closure of sites in Castleford, Leigh, Middlesbrough, Northampton, Poole, and Weymouth.
The Weymouth cinema will shut its doors on 30 December, while the remaining five locations are scheduled to close on 19 January. The company had also earmarked its Hinckley branch for closure; however, it has secured a reprieve following the agreement of a new property deal.
Cineworld’s UK Presence Shrinks
Once the latest closures are complete, Cineworld will operate 90 cinemas across the UK.
The closures come as part of a restructuring plan approved by the courts earlier this year, which included significant rent reductions for many of its landlords. Despite facing resistance from prominent property owners, the plan garnered sufficient backing from creditors to proceed.
Documents shared during the restructuring process underscored Cineworld’s financial difficulties, revealing that the company lacked the funds to cover a quarterly rent bill of £15.9m due on 24 June.
Securing Financial Stability
Cineworld has bolstered its financial position by raising additional funds, including £40m in liquidity. It also plans to invest approximately £35m into refurbishing its remaining estate, aiming to enhance customer experiences at its existing cinemas.
Javier Sotomayor, President of Cineworld International, commented on the developments:
“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.”
Looking Ahead
While the closures mark a significant contraction in Cineworld’s UK presence, the company remains focused on improving its financial health and revitalising its cinemas to attract moviegoers.
In addition to the restructuring, Cineworld is also investing in its infrastructure and services, hoping to maintain its reputation as a leading player in the UK’s cinema industry.
