Cineworld is preparing to file for bankruptcy in the UK, where it is listed on the stock exchange, and in the US, The Wall Street Journal reported on Friday, August 19th.
The world’s second largest movie theater chain with more than 9,500 screens in 10 countries, second only to America’s AMC, is preparing to throw in the towel after the covid-19 pandemic that has gripped millions of spectators. the past three years.
According to ReutersCineworld warned the market on Wednesday of a lack of the movies Films that are able to attract large numbers of viewers to theaters would threaten the company’s liquidity in the short term.
Two years of confinement forced millions of people to stay at home, halted film production and made audiences more accustomed to flow. Later, when the theaters were able to reopen, the exhibitors found themselves with a shortage of popular films to show in order to make up for some of the lost cash.
Markets responded immediately to news of a possible bankruptcy – which Cineworld, contacted by the magazine, has not commented on – with shares of the company, listed in London, closing down 58% in Friday’s session.
Cineworld, at the end of 2021, had $8.9 billion in debt (about 8.7 billion euros at the current exchange rate) and cash on hand in the range of $354.3 million (346.9 million euros), according to Reuters.
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