‘Another blow to the town centre’ heartbroken locals react to Cineworld closures
Cinema lovers have been left heartbroken following news that Cineworld will close a number of sites across the UK.
The major entertainment operator confirmed on Saturday July 28th that it would shutter six sites in a various parts of the country.
Venues across in Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate, and Swindon Circus will be closing down over the coming months.
The decisions to cease operations at these sites comes as part of a major restructuring at the company, as it struggles with debt.
If the plan is approved by the court, the closures will become effective in late September 2024.
The operator of over 100 cinemas across the UK is also said to be renegotiating rent agreements for around 50 of its sites.
Struggling businesses often do this to help lower their operating costs and help retain more of their brick-and-mortar estate.
However, landlords don’t need to accept what’s put forward in these discussions.
This means that up to 50 additional Cineworld complexes could also be at risk of closure if the chain and its landlords cannot reach an agreement.
A Cineworld spokesperson said: “We are implementing a restructuring plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.”
News of the closures has upset fans of the chain, with many taking to social media to express their sadness.
Writing on X, formally known as Twitter, one said: “Getting the email that my local Cineworld is at risk of closure has broke my heart.”
“They closed the bristol one last year, now yate is earmarked for closure,. The nearest cineworld to us is over 20 miles away,” wrote another.
Another local cinema lover described news of the Glasgow closure as a “gut punch.”
“Not to be dramatic but it feels like such a gut punch seeing Glasgow Renfrew Street on the list of Cineworld sites at risk of closure,” they said.
A fourth described the closure in their area as “another blow to the town centre”.
A lot of major cinema chains have struggled following the pandemic, as customers got used to streaming films from home.
Big blockbusters such as the Barbie Movie and Oppenheimer drove punters back to the movie theatre last year, but it has not been enough to keep some venues afloat.
What else has happened at Cineworld?
Earlier this month, Cineworld was said to be weighing up its options and considering a major restructuring, which could include closures.
Sky News reported the chain was working with restructuring adviser AlixPartners on a plan that could lead to a sale or restructuring.
According to the broadcaster, such a move could “put an unspecified number of its UK cinemas at risk of closure”.
A restructuring plan allows a company to rework its balance sheet, restructuring debts and releasing cash into the business.
At the time of the report, a spokesperson for Cineworld said it was “continually reviewing” its UK operations “like many businesses”.
It came after Cineworld emerged from Chapter 11 bankruptcy in the US late last year.
Filing for a Chapter 11 bankruptcy means a company intends to reorganise its debts and assets while remaining in business.
At the time, the future of the chain’s 129 UK and Irish cinemas appeared to be in danger.
The company’s shares plunged almost 99% in the five years to 2023, as it was hit particularly hard by the pandemic and the enforced closure of its cinema sites.
Shortly after, Cineworld’s UK arm collapsed into administration on July 31.
The cinema chain was delisted from the London Stock Exchange a day later.
When a company enters administration in the UK, all control is passed to an appointed administrator, who must be a licensed insolvency practitioner.
Since then appointed administrators at Alix Partners have been assessing plans for a major restructure.
The business has posted significant losses as its come under pressure from platforms offering streaming services, such as Netflix and Amazon Prime.
What is happening across hospitality and the cinema sector?
CINEWORLD isn't the only chain that's struggling.
Odeon confirmed it would close five of its branches in May last year.
Empire Cinema also closed multiple sites in 2023 after falling into administration in July of the same year.
The company made the decision following “a thorough assessment of all available options”.
The hospitality sector has been struggling too.
In April, family favourite restaurant chain Whitbread revealed it was set to shut more than 200 locations and axe 1,500 jobs.
It shared the plans in its full year results, saying it planned to convert 112 restaurants into hotel extensions while closing 126 “loss-making” venues.
Pub giant Wetherspoons has been closing boozers across the UK too, and Byron Burger fell into administration last year.
In March, pizza giant Papa Johns said it would close dozens of locations.