Cineworld is set to file for bankruptcy

Cineworld Group Plc is set to file for bankruptcy.

The Wall Street Journal has reported that the Cineworld Group, which is the second largest cinema business across the globe, is preparing to file for bankruptcy.

The group is planning to continue the legal proceeding after reportedly struggling with empty seats in all its venues since the pandemic, according to sources concerned with the matter.

On Wednesday, Cineworld said it had a gradual increase in attendance at its screening venues since it reopened last year, but admissions in recent moments have dropped to below expected due to a 'limited film slate'.

The London-based cinema chain found itself in a similar situation in 2020, having nearly filed for bankruptcy due to Covid-19 restrictions.

The chain was given assistance from creditors while nearly 800 theatres were closed during the pandemic.

The British cinema business is now working with lawyers from Kirkland & Ellis LLP as well as consultants from AlixPartners to assist on the bankruptcy process, according to insiders.

The brand is expected to file a chapter 11 petition in the US, as well as considering to file an insolvency proceeding in the UK according to insiders.

This process would formally signify that the organisation is no longer able to meet its financial commitments or pay its debts.

Cinemagoers have taken to social media to share their sadness, with one person writing: "RIP Cineworld. That's what happens when the only films released now are Marvel and/or three hour nonsense."

"If you dare close down my local cineworld I’ll genuinely be p*****," another Twitter user stated, while someone else added: "Nooo. Cineworld Wandsworth is one of my favourite places on earth."

It is not yet clear what will happen with each of the 751 Cineworld cinemas across the world.

RIP Cineworld. That's what happens when the only films released now are Marvel and/or three hour nonsense x

— ßen (@ben12GL) August 19, 2022

LADbible has contacted a representative of Cineworld for a comment.

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