Cineworld Group Plc is preparing to file for bankruptcy, according to the Wall Street Journal. Cineworld this week warned audience numbers have been weaker than expected and predicted they will stay low until November due to “limited” film releases. The world’s second largest cinema business said earlier this week it was 'assessing options to shore up its finances' as a result.
The WSJ says Cineworld has engaged Kirkland and Ellis lawyers as well as consultants from Alix Partners to advise on the bankruptcy process. The paper says the group is looking at Chapter 11 bankruptcy in the USA and insolvency in the UK.
The group, which also owns the Picturehouse chain in the UK and Regal Cinemas in the US, had pinned its hopes on releases such as Top Gun: Maverick, The Batman and Thor: Love And Thunder to aid its recovery from the heavy impact of the pandemic. However, in a statement the firm said: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
