A CINEMA chain which has two York venues has confirmed today (August 22) it is considering filing for bankruptcy in the US, as the cinema chain continues to struggle with $5billion worth of debt.
Cineworld, which is part of the city's Community Stadium at Monks Cross and also owns the Picturehouse chain which includes City Screen in Coney Street, insisted its cinemas "remain open for business" and that there would be "no significant impact" on jobs.
The firm began the week by telling shareholders that its considering putting its US business into bankruptcy.
The world’s second biggest cinema chain has suffered amid market speculation over the past week as reports revealed it is struggling under heavy debts after a disappointing summer of film.
Shares in the company have plunged recently and slid even further on Monday following the announcement. At the end of the day its share price was down 0.87p at 3.2p.
Cineworld York, which opened on December 13 2019 with a £3 ticket deal has an Imax screen and features 13 state-of-the-art screens including VIP viewing screens, with an exclusive lounge, complimentary dining and luxury reclining seats.
And City Screen, with it's buzzing bar beside the river Ouse, is popular with locals and visitors alike.
The company employs more than 28,000 people globally.
Like other cinema chains, Cineworld was hit hard by the pandemic.
Many theatres were forced to close for extended periods during the lockdowns, or had to operate at a reduced capacity due to social distancing rules.
Cinema chains had hoped blockbusters such as the latest Bond film, Top Gun: Maverick and Thor: Love And Thunder would draw audiences back in after lockdown restrictions eased.
But, as The Press reported last week, Cineworld warned audience numbers have been weaker than expected and predicted they will stay low until November due to “limited” film releases.
In a statement the firm said: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”
Cineworld said it will continue with cost-saving plans but will also look at new options to improve its financial position.
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