Meanwhile, Cineworld and Regal theaters were open for “business as usual”, he added, and would remain so. “Cineworld would expect to maintain business as usual until and after any filing and ultimately to continue operations in the long term without significant impact on its employees,” the company said in a statement issued in response to reports last week. Cineworld shares tumbled as much as 80% in London on Friday after the Wall Street Journal reported that the world’s second-largest movie theater chain had spoken to lawyers at Kirkland & Ellis LLP to advise on bankruptcy proceedings in the United States and the United Kingdom. Cineworld said earlier last week that, despite a “gradual recovery in demand” since last spring, admissions fell short of expectations. The company blamed a limited slate of movies for the lack of moviegoers, a situation it expects to continue until the end of November. A Chapter 11 filing would give the company more time to restructure its debt and file for bankruptcy court while continuing to operate. Many large American companies have successfully used Chapter 11 to put their businesses on a more stable financial footing. Cineworld, which owns more than 500 cinemas across the United States as well as Picturehouse cinemas in the UK, reiterated on Monday that any “deleveraging transaction” would result in a “very significant dilution of existing equity interests” for its shareholders Cineworld. “Cineworld’s assessment of these strategic options remains ongoing. A further announcement will be made if and when appropriate,” he added. The company struggled to stay afloat during the pandemic, when it was forced to close its cinemas around the world. It suffered a loss of $2.7 billion in 2020 and $566 million in 2021. It’s a similar story for other theaters. Despite the big recovery, revenue at the US box office so far this year is nearly 30% lower than before the pandemic, according to Comscore, a media data company. Cineworld’s stock has recovered slightly from Friday’s drop, but is still trading nearly 60% below Thursday’s close. — Anna Cooban and Frank Pallotta contributed reporting.
