Who owns Cineworld? Locations explored as theatre chain files for bankruptcy

Cineworld Cinemas, owned by Cineworld Group, has confirmed that it is considering filing for bankruptcy in the US as it struggles with debt worth $5 billion.

Key members of the group include Alicja Kornasiewicz, the Non-Executive Chair, Moshe (Mooky) Greidinger, the CEO and Israel Greidinger, the Deputy Chief Executive.

The cinema chain also runs in nine other countries apart from the United States. This includes the United Kingdom's Picturehouse, which will reportedly function without any hindrance.

The BBC reported that like a number of other cinema chains, Cineworld was also hit by the pandemic. A number of theaters have also, reportedly, closed down due to frequent lockdowns. Several chains were unable to keep up with the reduction in sales due to the reduced number of cinemagoers and the social distancing rules.

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Exploring Cineworld Cinema's two major global locations

Cineworld Group has considered filing for bankruptcy only in the United States, even as the UK's Picturehouse remains intact and "open for business." This also means that there will be "no significant impact" on jobs as well.

Globally, the company operates more than 9,000 screens and has employed approximately 28,000 people. During the frequent lockdowns, the cinema chain had reportedly temporarily shut its UK cinemas and kept no less than 5,500 workers on furlough.

Reports of the company filing for bankruptcy come just a few days after it noted that options to shore up its finances were being assessed. The company stated that the same has been decided due to a "limited" movie slate and fewer audience numbers.

Much like other cinema chains, the company also pinned its hopes on major releases in 2021 and 2022 like Thor: Love and Thunder, The Batman, and Top Gun: Maverick. However, in 2022, movies including Jurassic World Dominion and Minions: The Rise of Gru have performed well in every cinema chain globally.

On Wednesday, the chain told the London Stock Exchange:

"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."

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Further monetary issues concerning the cinema chain

In 2021, the cinema chain already had a net debt of $8.9 billion and reported that it will probably restructure its balance sheet.

On August 19, the Wall Street Journal reported of Cineworld's potential bankruptcy, and the latter's shares were down by 26% making it a record low for the company.

The company has abandoned its plans to takeover Cineplex. They are also in a legal dispute with the cinema chain, which has asked for $946 million in compensation for leaving the deal midway.

The company also has payment obligations to former shareholders. Polaris Capital Management, the company's largest stakeholder, had cut its stake to 4.7% last week. Previously, they had a holding of 7.8%.

As per Refinitiv data, via Reuters, another shareholder, Global City Holdings owns 20% of the company.