Cineworld Group PLC (LSE:CINE) is planning to close dozens of its British cinemas as part of its restructuring as the industry continues to be wiped away due to the rise in streaming.
Close to a quarter of the 100 UK sites could close under new plans, reported by Sky News, while discussions with landlords over tweaking rental costs are expected to take place at close to half of the locations.
Back in 2022, Cineworld filed for Chapter 11 bankruptcy in the US as its multi-million dollar debt pile became increasingly unmanageable.
A little after, it delisted its shares from the London Stock Exchange, after a restructuring agreement meant lenders took control while shareholders got nothing.
Approximately US$4.5 billion of the company’s debt was swapped for shares as senior lenders became the sole owners through a newly incorporated company, called NewCo/New Cineworld.
New debt financing worth around US$1.7bn was obtained, while equity capital in the range of US$800 million was raised.