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Major bankruptcy is about to rock the movie theater industry

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Amanda Catherine
Amanda Catherine
Amanda Catherine is an American Film Critic, writer, and journalist. She received a postgraduate degree in Film and Media Studies and has contributed several articles for top magazines. Her film criticisms were published on leading websites and have gained massive popularity. Besides film criticism, she loves to write about recent hot topics of celebrities and breaking news.

Cineworld Group Plc, the parent company of Regal Cinemas, is set to file for bankruptcy in the coming weeks after failing to attract audiences as the pandemic continues to subside. Wall Street Journal was the first to break the news about the world’s second largest cinema chain. Cineworld, which is headquartered in London, England, is likely to file a Chapter 11 petition in the US and potentially file insolvency proceedings in the UK.

The news comes after the theater company said that acceptance rates were lower than expected due to a limited slate of films in the fall. In a statement released earlier this week, received by Term, the company stressed how the limited theatrical offerings “will adversely impact the Group’s trading and liquidity position in the near term.” Regal’s owner is also filing an appeal with the Ontario Supreme Court against a decision to award $1.24 billion to Canadian cinema chain Cineplex following a failed acquisition (via global news). The company is negotiating with its creditors to fuel a costly bankruptcy process.

As Cineworld struggles, AMC Theatres, the world’s largest theater chain, is optimistic about the future. The company managed to stay afloat and raise over $2 billion despite similar attendance issues due to strategic decisions and support of retail investors by the company’s stock (via Reuters). In a statement released following Cineworld’s bleak comments, AMC Theaters CEO Adam Aaron highlighted the upcoming challenges the industry will face, but stated “we remain confident in AMC’s future.”

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