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Regal Cinemas parent Cineworld files for bankruptcy
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Cineworld, the U.K. parent of Knoxville, Tennessee-based Regal Cinemas has filed for bankruptcy in the U.S.
The world’s second-largest cinema operator behind AMC Entertainment fell victim to COVID-19 lockdowns along with the failed acquisition of a Canadian movie chain and the successful acquisition of Regal, which weighed Cineworld down with enormous debt.
CINEWORLD GROUP PLC
"The pandemic was an incredibly difficult time for our business, with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point," said CEO Mooky Greidinger in a statement.
“The pandemic was an incredibly difficult time for our business, with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point…”
The group warned last month that recent admission levels had been "below expectations" despite a gradual recovery of demand since theaters reopened from COVID-19 lockdowns in April 2021. Cineworld expects lower levels of admissions to continue until November due to a limited film slate.
During the restructuring process, the groups expects to operate its global business and cinemas as usual without interruption and currently anticipates emerging from Chapter 11 during the first quarter of 2023.
The group warned of a possible filing last month when it said management was weighing restructuring options including "a possible voluntary Chapter 11 filing in the United States and associated ancillary proceedings in other jurisdiction."