Wed. Nov 27th, 2024
alert-–-cineworld-reveals-first-six-uk-sites-it-is-closing-in-first-phase-of-restructuring-plan-expected-to-hit-up-to-19-more-with-hundreds-of-jobs-being-axedAlert – Cineworld reveals first six UK sites it is closing in first phase of restructuring plan expected to hit up to 19 more with hundreds of jobs being axed

Cineworld has revealed the first six UK sites it will close as it enters the first phase of its restructuring plan.

Cinemas in Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate, and Swindon Circus will be closing down in the coming months.

The company has said it now beginning a consultation process with employees at those sites and it will offer as many redeployment opportunities to nearby locations as possible.

But the company has warned the total number of impacted sites cannot be confirmed until the restructuring process is complete.

Sources told Sky News yesterday that Cineworld, which currently runs around 100 sites across the country, is expected to close 25.

Cineworld’s restructuring plan will now go before the court, and if approved, the process is set to go into effect in September. 

The chain said it decided to axe the six locations as they were ‘commercially unviable’, in an attempt to return the business to profitability.

Its plans will also try to reduce rental costs with landlords in the UK. 

Cineworld claims market rents for cinemas have reduced over the last few years, meaning some of its rents now cost more than the market rate. 

Landlords on marginal and loss making cinemas are being asked to reset the rent to the market level, according to the company. 

It is not known how many of Cineworld’s sites have asked their landlords to reduce the rent, but SkyNews previously reported the number as 50.

A Cineworld spokesperson said: ‘We are implementing a Restructuring Plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.’

While the restructuring plan is ongoing, Cineworld’s sites will continue to operate as normal. The plan will not affect the Cineworld business outside of the UK. 

The company is being advised by AlixPartners. 

But despite Cineworld confirming the six sites to close, other cinema operators could step in to save the day and take them over.

Tim Richards, chief executive of cinema chain Vue, said previously he would ‘absolutely’ look to take over sites from rival operators.

He said: ‘They would need to be qualitatively complimentary with our circuit but I think we’ve already demonstrated over the last 20 years that M&A and purchasing cinemas is part of our DNA.’

The recent announcement comes as many customers blamed the cinema chain’s decline on its prices, claiming a family trip to the cinema has become too expensive. 

After the news of the closures broke on social media yesterday, a number of cinema-goers took to X, formerly Twitter, to express their views.

Two family tickets to a 4DX showing, which includes two children and two adults: £58.66

Two large popcorns: £11.30

Two large hot dogs: £11.50

Confectionary (pick and mix) for the kids: £6.90

Four large soft drinks: £16.80

Grand total: £105.16

Source: Cineworld and TheatreFoodandFun.com

One commenter said: ‘With cinemas being so over priced and given that films now take less time before they end up on streams I’m not surprised.

‘Does anyone remember orange Wednesdays and Saturday morning pictures for £1.. ah the good old days.’

Earlier this month, Cineworld customers said the chain has priced them out of trips to the movies.

calculated a family of four going to see a film in 4DX along with snacks and drinks could now cost as much as an eye-watering £105.

That’s for a family of four to see a 4DX screening of Inside Out 2 at Wandsworth in London, buying two large popcorns, two large hot dogs, confectionary for the two children and four large soft drinks. 

And that’s without splashing out on special 3D glasses – which cost £5 a pair. 

However, prices may vary depending on where the Cineworld is located.

Cineworld disputed ‘s figures and claimed a Family Special deal would be cheaper, although this would take customer research and would not available for everyone.

A spokeswoman said: ‘With the Cineworld Family Ticket, for example, adults pay kids’ prices, so it costs just £31.96 (£7.99 per person) for a family of four to see a regular 2D screening of Inside Out 2 at Cineworld Wandsworth. 

‘By upgrading to 4DX with a family ticket, adults still pay kids’ prices, and families get the added enjoyment of stimulating effects like water, wind, lightning, bubbles and moving seats.

‘Family tickets also come with a discount on food with a Family Special for £19, which includes a regular popcorn, two regular soft drinks, plus two Munchboxes.’

Earlier this month sources told Sky News that the insolvency mechanism employed by Cineworld was expected to be a restructuring plan which would allow it to rework its balance sheet and restructure debts. 

Cineworld grew under the leadership of the Greidinger family into a global giant of the film industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years prior.

However its multibillion-dollar debt mountain led it into crisis, and forced the company into Chapter 11 bankruptcy protection in the U.S. in 2022.

Filing for a Chapter 11 bankruptcy means a company intends to reorganise its debts and assets to have a fresh start, while remaining in business.

Cineworld shares were worth just 0.6p in June last year after it was hit hard by the pandemic. They were changing hands at 300p just five years ago.

It caused it to delist from the London Stock Exchange in August 2023 after Cineworld’s UK arm collapsed into administration as its share price continued to fall and fears were raised for its survival.

A deal was struck last year which exchanged several billions of dollars of debt for shares, with a significant sum of fresh cash injected into the company by a group of hedge funds and investors.

But Cineworld is not alone in facing headwinds, with brands such as Picturehouse, Odeon and Empire all also having to close cinemas in the past year.

Picturehouse will close branches at Stratford East, Bromley and Fulham Road in London this summer.

Meanwhile Odeon closed five in June last year, with Empire collapsing into administration a month later – closing six.

Over the past few years, Britain has been falling out of love with the silver screen as Hollywood strikes, rising prices and the popularity of TV streamers have all turned audiences off. 

In 2020 there were 879 cinemas in the UK, but it has fallen every year since then and now amounts to only 825, according to the UK Cinema Association. 

The chief executive of the UK Cinema Association Phil Clapp previously told the operating environment for UK cinema ‘undoubtedly remains a challenging one’.

He said: ‘Having survived the unique challenges of the pandemic – when many sites were closed or operating under restrictions for many months – the sector has since then needed to navigate both the cost of living crisis and the writers’ and actors’ strikes of last Autumn.

‘The latter in particular has meant that cinemas have had many fewer films to show the public than they would want.’

1. Cineworld Queens Links, Aberdeen

2. Cineworld Union Square, Aberdeen

3. Cineworld Aldershot

4. Cineworld Ashford

5. Cineworld Ashton-under-Lyne

6. Cineworld Barnsley

7. Cineworld Basildon

8. Cineworld Bedford – to close

9. Cineworld Belfast

10. Cineworld Broad Street, Birmingham

11. Cineworld NEC, Birmingham

12. Cineworld Boldon Tyne and Wear

13. Cineworld Bolton

14. Cineworld Bracknell

15. Cineworld Bradford

16. Cineworld Braintree

17. Cineworld Brighton

18. Cineworld Broughton

19. Cineworld Burton upon Trent

20. Cineworld Bury St Edmunds

21. Cineworld Cardiff

22. Cineworld Castleford

23. Cineworld Cheltenham

24. Cineworld Chesterfield

25. Cineworld Chichester

26. Cineworld Crawley

27. Cineworld Dalton Park

28. Cineworld Didcot

29. Cineworld Didsbury

30. Cineworld Dover

31. Cineworld Dublin

32. Cineworld Dundee

33. Cineworld Eastbourne

34. Cineworld Edinburgh

35. Cineworld Ely

36. Cineworld Falkirk

37. Cineworld Parkhead, Glasgow – to close

38. Cineworld Renfrew Street, Glasgow

39. Cineworld Silverburn, Glasgow

40. Cineworld Gloucester Quays

41. Cineworld Harlow – Harvey Centre

42. Cineworld Harlow – Queensgate

43. Cineworld Haverhill

44. Cineworld Hemel Hempstead

45. Cineworld High Wycombe

46. Cineworld Hinckley – to close

47. Cineworld Hull

48. Cineworld Huntingdon

49. Cineworld Ipswich

50. Cineworld Leeds

51. Cineworld Leigh

52. Cineworld Llandudno

53. Cineworld Bexleyheath, London

54. Cineworld Enfield, London

55. Cineworld Feltham, London

56. Cineworld Hounslow, London

57. Cineworld Ilford, London

58. Cineworld Leicester Square, London

59. Cineworld South Ruislip, London

60. Cineworld The O2 Greenwich, London

61. Cineworld Wandsworth, London

62. Cineworld Wembley, London

63. Cineworld West India Quay, London

64. Cineworld Wood Green, London

65. Cineworld Loughborough – to close

66. Cineworld Luton

67. Cineworld Middlesbrough

68. Cineworld Milton Keynes

69. Cineworld Newcastle upon Tyne

70. Cineworld Isle of Wight, Newport

71. Cineworld Spytty Park, Newport

72. Cineworld Northampton

73. Cineworld Nottingham

74. Cineworld Plymouth

75. Cineworld Poole

76. Cineworld Rochester

77. Cineworld Rugby

78. Cineworld Rushden Lakes

79. Cineworld Sheffield

80. Cineworld Shrewsbury

81. Cineworld Solihull

82. Cineworld Speke

83. Cineworld Stevenage

84. Cineworld St Helens

85. Cineworld St Neots

86. Cineworld Stoke-on-Trent

87. Cineworld Regent Circus, Swindon – to close

88. Cineworld Shaw Ridge, Swindon

89. Cineworld Telford

90. Cineworld Wakefield

91. Cineworld Warrington

92. Cineworld Watford

93. Cineworld Weston-super-Mare

94. Cineworld Weymouth

95. Cineworld Whiteley

96. Cineworld Witney

97. Cineworld Wolverhampton

98. Cineworld Yate – to close

99. Cineworld Yeovil

100. Cineworld York

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