World's second-largest movie theater chain files for bankruptcy
Regal Cinemas' owner, Cineworld Group, disclosed on Wednesday that it would be filing for Chapter 11 bankruptcy.
The decision has a negative impact on the future of the movie theatre business because AMC, the largest network of theatres in the world, was saved from bankruptcy last year by retail investors in its stocks.
After 2023, when Cineworld anticipates coming out of bankruptcy protection, it plans to implement "a real estate optimization strategy in the US," which may involve closing or selling theatres.
Cineworld filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. Yahoo Finance stated that the company had ran up a debt of more than $5 billion.
A dearth of big-budget films this fall would probably have an impact on audience attendance, according to Cineworld, which runs 747 cinemas throughout the world. However, Hollywood output has been slowed by pandemic backlogs and supply chain concerns.
In the bankruptcy proceedings, Cineworld stated that it planned to continue operating its company unabated and to respect client membership programmes.
After the revelation, AMC CEO Adam Aron tweeted, "Fortunately, AMC is in a very, very different circumstance - because retail investors welcomed us and let us raise boatloads of cash."
The US domestic movie office for 2022 is down roughly 30% compared to 2019, according to Comscore, but AMC was nevertheless managed to raise $2.2 billion over the past two years in a meme stock frenzy.
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