Cineworld has announced its decision to close six cinemas across the UK as part of a comprehensive restructuring plan. The closures come as the world's
second-largest cinema chain, with 101 locations in the UK and Ireland, continues to struggle with the financial impacts of the Covid pandemic and the rise of streaming services.
The cinemas set to close are Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate, and Swindon - Regent Circus. This move follows Cineworld's entry into administration in July 2023, as the company grappled with nearly £4 billion in debt.
Despite efforts to find a buyer for some or all of its UK sites, Cineworld has decided to shut down the six locations deemed "commercially unviable." The company, which also owns the Picturehouse chain in the UK, has begun a consultation process with affected staff, aiming to redeploy as many employees as possible.
Cineworld strongly denied media reports suggesting that a further 19 cinemas could close or that redundancies could number in the hundreds. The company will also enter negotiations with landlords at several locations to reduce costs, potentially through lower rents.
As part of the Regal Cineworld Group, the UK operation entered administration, impacting over 28,000 staff across 751 global sites, with 128 locations in the UK and Ireland. However, Cineworld's business operations outside the UK remain unaffected.
In 2019, Cineworld reported sales of $4.4 billion, the last full year before the pandemic. Although audiences began returning post-pandemic, the company stated in 2022 that it expected admissions for 2023 and 2024 to remain below pre-pandemic levels.
A Cineworld spokesperson commented, “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 require court approval. While this process is ongoing, all of Cineworld's UK operations will continue until at least late September. Photo by Paul Harrop, Wikimedia commons.