Cineworld Group is allegedly preparing to file for bankruptcy after struggling to rebuild from the pandemic, according to a Wall Street Journal report.
The entertainment giant is the world's second-largest cinema chain and owns locations across 10 countries including the UK and the United States. According to the report, Cineworld has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to receive advice on the bankruptcy process. The move could put as many as 102 cinemas located in the UK at risk of closure.
It comes just days after Cineworld warned that a lack of big-budget movies was generating a negative impact on admission levels and would likely continue to cause issues until November. Today's report suggests that the company is expected to file a chapter 11 petition in the United States and is considering filing an insolvency proceeding in the UK.
