Covid-19 rendered movie theatres completely unusable. During the pandemic, theatre corporations like AMC and Cinemark were forced to close several locations for an extended period of time. Those that were able to remain open were obliged to enforce social segregation between viewers by limiting seating to 50% occupancy.
AMC Entertainment's financial situation deteriorated to the point where it was expected to run out of money by the end of 2020. Luckily, a $917 million capital infusion helped the chain from going bankrupt. Regal Cinemas' parent company, Cineworld, unfortunately wasn't as fortunate.
The Cineworld Group has reportedly filed for Chapter 11 bankruptcy, according to CNN News. The second-largest movie theatre chain in the world is run by a British corporation with its headquarters in London, England. They have 747 locations worldwide and over 9,139 screens, and they operate in ten different nations.
Due to the effects of Covid-19, which delayed the release of tentpole films, Cineworld briefly closed theatres in Ireland, the United Kingdom, and the United States in October 2020. The harm from the ongoing epidemic was already done, despite the release of blockbuster films like No Time to Die and Spider-Man: No Way Home helping to increase the company's global revenue levels by about 100% compared to those in 2019.
In fact, the business issued a warning last month that it was seriously thinking about filing for Chapter 11 as a strategy to lower its debt. According to a recent filing in the U.S. Bankruptcy Court for the Southern District of Texas, it now appears that the corporation has decided to file for bankruptcy on a voluntary basis under Chapter 11.
In the first half of 2023, Cineworld anticipates emerging from Chapter 11, and they are optimistic that this choice will strengthen their balance sheet and offer the business freedom to grow quickly. The corporation also has intentions to liquidate or sell some theatres and to bargain with US landlords to possibly improve lease terms for movie theatres.
According to CNN News, Cineworld suffered losses from the Covid-19 Pandemic of over $2.7 billion in 2020 and $566 million in 2021. The theatre chain's revenue has increased significantly, but it is still much below what it was when the Coronavirus wreaked havoc on the globe. Happily, the business's most recent Chapter 11 filing has increased its lifeline.
Cineworld intends to carry on with business as usual throughout the process at all of its theatres, including Regal, Picture House and Planet, and Cinema City. Additionally, the business will respect consumer membership programmes like Cineworld Unlimited, Regal Unlimited, and Regal Crown Club.