Cineworld preparing to 'file for administration' as part of restructuring plan

14 June 2023 , 08:08

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Cineworld is reported to be preparing to file for administration (Image: Getty Images)

Cineworld is reportedly preparing to file for administration as part of a restructing plan.

The multinational cinema operator, whose brands include Regal, Cinema City, and Picturehouse, is said to be lining up AlixPartners to act as the administration of its London-listed holding company, according to Sky News.

Sources close to the company told Sky the administration plans could be announced by the end of the week.

Cineworld has around 128 sites in the UK and the Republic of Ireland - these sites operate under the Cineworld and Picturehouse brands - globally the chain has around 750 sites.

However, sources told Sky that the chain's British operations would not be affected by the administration process.

Full list of cinemas at risk in the UK as major chain gives update on its future

The plan aims to reduce Cineworld's debt by around £4.5billion.

Cineworld declined to comment when approached by the Mirror.

Cineworld filed for Chapter 11 bankruptcy in the US last year, however the chain recently reported that it expected to exit the protection this July.

The company had filed for a bankruptcy protection order to give itself time to reorganise its debts and assets.

It has also been reported that Cineworld had struck a deal with lenders controlling nearly all of its revolving credit facilities and nearly two-thirds of its outstanding debts.

Sky reports that the chain will be recruiting a new board for the group as part of its move to take control of the business.

This also includes hiring a new chief executive.

Last month, the world's second-largest cinema chain abandoned its plans to sell off its US UK, and Irish businesses after it failed to receive acceptable officers.

However, at the time it said it would continue to auction off its operations outside the UK, Ireland and the US.

This included operations in Poland, the Czech Republic, Slovakia, Hungary, Bulgaria, Romania and Israel.

Cineworld issues update on UK cinema sites after filing for bankruptcy

Cineworld confirmed that it will continue to trade as usual during this process.

Alongside other cinema chains, Cineworld was hit hard by the Covid-19 pandemic and the lockdowns which were introduced.

As well as this, Cineworld faced the added pressure of having to compete with streaming services.

Ruby Flanagan