Vue To Buy Cineworld Cinema Sites In The UK?

It seems as though Vue might be looking to take over some of Cineworld’s cinema sites in the United Kingdom, which would be a pretty huge move from the cinema chain. This is a rumour that started this weekend after recent comments made by Vue founder, Tim Richards, over a break-up of cinema giant, Cineworld.

The company, which has been in chapter 11 bankruptcy since October and largely suffered over the past two years thanks to business closures and the now ill-advised takeover of Cineplex in Canada in early 2020, is in the hands of its creditors. Currently undergoing a restricting process, the company desperately needs to gain liquidity and confidence to pay back its billion-dollar debts.

Reports of a break-up came first on Friday with news that the company may sell off its Eastern European chains, (Cinema City, Yes Planet, Ray Chen) to undisclosed interested buyers. However, more strength on the balance sheet and cash flow is needed, which has led to further break-up rumours, perhaps for other European sites and potentially in the United Kingdom.

Vue is interested in taking over Cineworld’s UK sites

Credit: VUE

So, it seems as though Vue is interested in taking over some, if not all, of Cineworld’s sites across the United Kingdom; at least, that’s the rumour. Vue commands cinemas across the continent, and the company was the victim of a restructuring not too long ago. Vue’s founder, Richards, recently confirmed to The Times that they would be interested. Here’s what he had to say on the matter:

When you have to close your business for 18 months and have restrictions for another six months, there’s no company in the world, whether aggressively or conservatively leveraged, that could survive that.

He also commented that Vue may be looking at a stock market flotation in the very near future. Here’s what he had to say:

I think because of our size and scale, our next exit would likely be a flotation.

This would raise even more funds for acquisitions and potentially purchase sites from Cineworld across Europe. However, Cineworld seems keen to shut down any talk of break-ups stating that the company “does not intend to initiate, an individual auction for any of its U.S., U.K. or rest of world businesses on an individual basis”.

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