Headquartered in the UK, Cineworld is the town’s major cinema chain, and big news pertaining to the same is on its way. The company is set to close nearly 25 cinemas across the country. This major announcement will, in turn, leave hundreds of people jobless.

Cineworld to outline a way forward on Friday with its business restructure that will feature closure. The closure will be done on some cinemas immediately and those others are to be bolted down later in summer. The company runs over 100 cinemas across the UK and thousands of employees. The number to lose jobs cannot be immediately established, but it is significant.

Why the Changes?

Cineworld has been straddled with a hefty pile of debt. This year, in 2022, as one of the consequences of its very rough financials, the company passed through Chapter 11 bankruptcy protection in the US. To get the company to survive, billions in debt were swapped for shares, and new investors put in more money.

Talks with Landlords

Cineworld is now in talks with the major landlords, such as Landsec and Legal & General, about the company’s restructuring plans. In order for the proposals to succeed, most of Cineworld’s creditors need to agree, with the plans including the closing of 25 sites and rent reduction in another 50. A further 25 are now considered commercially viable and so remain open, with no new changes proposed for them.

Many people who work at Cineworld might lose their jobs. The company hasn’t given an exact number yet, but it’s expected to be in the hundreds. This is a tough situation for many families who depend on these jobs. Some landlords might oppose the closure plans, but it’s not clear if they can stop the changes from happening.

Future of Cineworld

Cineworld initially tried to do this, but now it is looking more seriously at restructuring the operation. They are being advised by a company by the name of AlixPartners to try to manage their way through this process. Other cinema operators may now look to rescue some of the sites that Cineworld has shut down, offering limited hope for their employees and moviegoers.

Cineworld expanded tremendously over the years, especially under the leadership of the Greidinger family. They acquired several other cinema chains, including Regal in the US and the British company Picturehouse. However, their colossal debt has seen them land in this rough situation.

Conclusion

The restructuring plan of Cineworld is a giant decision that is bound to affect many people and places all over the world. As much as the company hopes these changes will be what it takes to revert to a state of positive, financial sturdiness, doing so also manages to mean job loss and cinema closures. The future is bleak, but it moves anyway in a bid toward the positive change of this giant cinema.