Cineworld has revealed plans to cut hundreds of jobs and reduce its UK operations by at least 25 percent in a major restructuring this week.
The cinema operator will reveal details of its overhaul today (Friday, July 26), including the closure of around 25 sites across Britain.
Sources said the closure process for almost six Cineworld cinemas will start immediately, and these locations will close later this summer.
While the number of job losses is unclear, estimates suggest it will be “at least in the hundreds.”
Cineworld has been in preliminary discussions with major commercial landlords, such as Landsec and Legal & General, regarding its restructuring.
The plan requires the approval of most creditors to proceed with the site closures, and Cineworld is also seeking rent reductions at another 50 locations.
About 25 cinemas will remain unaffected if the plan goes forward.
Despite some landlords considering opposing the proposals, it remains uncertain whether this opposition will be sufficient to block the restructuring plan.
Cineworld initially explored selling the business but has shifted focus to a formal restructuring process.
AlixPartners is advising the company in this endeavor.
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Cineworld operates over 100 sites in Britain, including the Picturehouse chain, and employs thousands of people
The company expanded globally under the Greidinger family’s leadership.
Due to a multibillion-dollar debt load, it faced a crisis, which led to Chapter 11 bankruptcy protection in 2022 and a delisting from the London Stock Exchange last August.
Following its emergence from bankruptcy, Cineworld appointed Eduardo Acuna, former head of Cinepolis’s operations in the Americas, as its new CEO.
The company also operates cinemas in Central and Eastern Europe, Israel, and the US.
Major summer film releases in the UK, including Despicable Me 4, A Quiet Place: Part One, and Alien: Romulus, are anticipated to impact cinema operations.
