Cineworld Group to file bankruptcy after poor attendance, affecting 505 US theatres

The world’s second-largest movie theatre chain Cineworld Group plc, which owns Regal Cinemas and 505 US-based theatres, is preparing to file chapter 11 bankruptcy.

The London-based company cites poor attendance since reopening theatres in 2021, which did not meet company expectations, and not enough films being produced as reasons for its loss of income.

Cineworld Group had a net debt of $5 billion at the end of 2021, according to a report by The Hollywood Reporter. 

With strong performances from movies to start 2022 like ‘Top Gun: Maverick,’ momentum is expected to stall to end the year.

This follows with a predicted drop in admission ‘due to a limited film slate that is anticipated to continue until November 2022 and (is) expected to negatively impact trading and the group’s liquidity in the near term,’ the company said.

The chain almost filed bankruptcy in 2020 before receiving investments after the pandemic hit the company hard. 

Cineworld Group plc, owners of Regal Cinema, is preparing to file for chapter 11 bankruptcy in the US after piling a debt upward of $5 billion 

The movie theatre chain cites low attendance and postponed movies as factors in the company’s loss of revenue. Movies like Top Gun: Maverick (pictured) came out this summer after being put back by nearly two years

Major films which had been promised to have been released by now such as Avatar 2 and Avatar 3, have still not hit box offices.

And long-anticipated action thrillers such as the latest James Bond film and Top Gun Maverick were also seriously delayed.

Top Gun Maverick was released in May of this year after an almost two-year delay from June 2020.