The Cineworld Group, the second largest cinema group in the world, is reportedly preparing to file for bankruptcy.
The Wall Street Journal reports the British-based firm is considering the move after struggles to rebuild attendance following the Covid pandemic.
Cineworld, which also operates Regal Cinemas in the United States, has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process.
It comes after 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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