Regal cinemas owner Cineworld announced that the company is filing for bankruptcy. The cinema giant is admitting to its low admissions according to recent reporters. The company owns Regal Cinemas in the U.S. and hired a lawyer from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the continuing process to apply for bankruptcy.
While this process is happening, Cineworld has made it clear that their theaters in the U.S. will still be open for viewers to come and enjoy movies.
Cineworld’s recent report made Wednesday revealed lower admissions that contribute to their bankruptcy, Cineworld said in a recent interview that due to the hit movie theaters took during the pandemic and by filing for bankruptcy, they are taking the necessary steps for financial strength which means “significant previously disclosed operational and financial initiatives to manage costs and enhance liquidity.”
The company recorded a 708.3 million loss before tax for the full year ending Dec. 31, 2021, the company lost 3 billion during the year of covid in 2020. The group net debt increased by 492.7 million from 4.33 billion to 4.84 billion, In July 2021, Cineworld secured 200 million additional liquidity incremental loans.
In an update to their previous statement, the theater company noted that while they have indeed filed for bankruptcy, they expect the choice to have “no significant impact upon its employees.”
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