Exact dates major cinema chain with over 100 sites will close two locations in major city
THE dates a major cinema chain with over 100 sites will close two outlets have been revealed.
Odeon Cinemas is set to close its Covent Garden and Surrey Quays branches in the next two weeks.
The Covent Garden site is set to close on Thursday, August 8. The Surrey Quays cinema will close for the final time on August 18, according to Southwark News.
A spokesperson said: “ODEON confirms it will be closing its Covent Garden and Surrey Quays cinemas, due to redevelopment plans
taking place at both sites by the respective landlords.
“Supporting our local cinema teams is our number one priority. We will be looking to secure jobs for as many of them as possible in one of our other local cinema locations.
“We would like to apologise to our guests for any inconvenience this will cause.”
Time Out has reported that the Covent Garden site has been earmarked by property developers.
There has also been reported interest from Cirque du Soleil, who are reported to have eyed the site as a 400 seater base.
One film fan posted on X: ” “So I’m afraid to say what I posted earlier is true. I just popped into @ODEONCinemas Covent Garden and yes it closes this Thursday.
“The site has been purchased and will be converted into a “luxury” hotel and theatre. Fortunately the staff are being deployed elsewhere. Very sad.”
Last year Odeon confirmed a raft of closures across the country. Magdalen Street, Oxfordshire, Rigby Road, Blackpool, Weston-super-mare, Ayrshire and Banbury closed on June 5 2023.
At the time Odeon said in a statement: “We can confirm that, following a thorough assessment of all available options we have made the very difficult decision to close a small number of our cinemas.
“We know this will be disappointing news for our guests and we apologise for any inconvenience caused.
“We would like to thank them for their choosing ODEON to enjoy the magic of cinema.
“Looking after our people is our number one priority and we are looking to secure jobs for as many team members as possible in one of our 116 other cinemas across the UK and Ireland.”
Sky News recently reported that Cineworld is considering shutting down around a quarter of its approximately 100 UK multiplexes,
Up to 25 local cinemas could close permanently under the plans.
The chain is also seeking to renegotiate rent agreements for around 50 of its locations.
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.
However, 25 cinemas will be left unaffected by the restructuring plans and will remain open for the foreseeable.
FINAL DECISION TO COME
The Sun understands that Cineworld’s creditors and landlords will formally receive the plans in the coming weeks.
A creditor is an individual, business, or financial institution to whom the company owes money or is obligated to repay a debt.
The restructuring is expected to be carried out through a specific insolvency mechanism rather than a company voluntary arrangement (CVA).
Insolvency mechanisms aim to either rescue the company, liquidate it, or achieve the best return for creditors.
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”.
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 shutter 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.