Cineworld is expected to file for bankruptcy in the not-so-distant future, which is not good news for the iconic UK cinema chain. The news first broke via The Wall Street Journal who’s stated that Cineworld, the parent company of US chain Regal, to file for bankruptcy in the coming days.
According to their sources, the company has already enlisted the legal firm, Kirkland & Ellis, to facilitate proceedings. The news comes less than 72 hours after the industry giant told stockholders and the market they expected to struggle fiscally across the coming months based on a weak film slate.
Cineworld is going to have to file for bankruptcy
This news comes after the company amassed a large pile of debt over the years, and then the Covid-19 pandemic has seemingly just made the whole ordeal even worse for the company as they’ve battled to survive. Cineworld is expected in the US to file a chapter 11 petition, and it is considering a UK proceeding as well.
A Chapter 11 filing can actually give a lot of breathing space and time to plan a recovery process for the US arm and isn’t always a disaster for the company. Shareholders, though, look set to be wiped out potentially. But this isn’t the end of Cineworld they will most likely survive.
Will Cineworld survive this?
This story is still developing, so we’ll be sure to bring you more news when we receive it. As for Cineworld’s future, shareholders, the market and staff are eagerly awaiting an announcement, either confirming or denying this news, from the company itself.
Unfortunately, as is often the case, the news breaks on the market first before employees have any communication. Again, we’ll be sure to update you on this story as soon as we hear anything else about what’s going on with Cineworld behind the scenes. I have to say that it doesn’t look great for the company. Fingers crossed they get things sorted out sooner rather than later.
What do you make of the news? Let us know in the comments below, we’d love to hear from you.
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