After almost 30 years of running the nation's big screens, Cineworld has filed for administration.
The business will undergo major restructuring in the coming months, and will even have it's stock frozen as a result.
It's a huge blow for movie lovers as the brand is among the world's largest cinema chains.
Despite this, the group has promised the move will not affect the British operation of the business.
Advert
This means that other parts of the cinema chain including Regal, Cinema City, and Picturehouse should remain open will the restructuring happens.
Currently, Cineworld has debts close to $5 billion (£3.9b) and it is hoped that the process will help the film firm exit bankruptcy.
It is also hoping to secure $80 million (£628m) in a new rights deal, as well as an additional $1.46 billion (£1.1b) with new debt financing as it rebuilds the business.
Globally, the brand has 751 sites - with around 128 of these based in the UK and Ireland alone. It also has branches in Israel, the United States and large parts of Eastern Europe.
Advert
Sadly, it's still unclear what will happen to these parts of Cineworld as it undergoes major restructuring.
The brand previously filed for Chapter 11 bankruptcy in the US back in September 2022.
When this was announced, Chief Exec Mooky Greidinger gave a statement which read: "This agreement with our lenders represents a ‘vote-of-confidence’ in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.”
It continued: "With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering moviegoers the most immersive cinema experiences and maintain its position as the ‘best place to watch a movie’."
Advert
Despite this, the brand remains hopeful it can overturn its current debt issues and it's hoped that Cineworld will exit bankruptcy next month after restructuring its debts and liquidating some assets.
However, last month the brand abandoned plans to sell off its US, UK and Irish business after failing to find a suitable offer.
Like other cinema chains, the London-based business was hit hard by Covid-19 and has struggled to recover after it reopened.
However, it's hoped that this summer's blockbusters like Oppenheimer, Barbie and Mission Impossible will give a much need boost to the entire industry as it goes head to head with streaming sites.
LADbible has contacted Cineworld for a statement.
Topics: UK News
Katherine Sidnell