This popular cinema chain has just filed for bankruptcy
There are more than 500 locations in the United States
We have all been impatiently waited for the release of a new film, and bought tickets in advance so that we can head to our local theater and be part of the noisy crowd of the opening evening. After all, there is nothing likeWatch a movie For the first time on the big screen. But if you are a fan of the cinema, you should know that a popular cinema channel has filed its bankruptcy and your local theater could be assigned. Read more to find out which channel is now faced with serious financial problems.
Read this then:This popular retail chain closes stores permanently, from September 21.
The cinemas were hardly affected during the locking periods.
With the rise of Netflix and other streaming services, it was much easier to filter movies at home. During the Covid-19 pandemic, many major studios even let viewers rent films that could not be screened in theaters due to quarantine restrictions. But while we may have appreciated this comfortable luxury, the global theatrical market therefore has a severe blow.
In 2019, the world box office market was worth a total of $ 42.3 billion, going to $ 11.8 billion in 2020 at thepandemic height, according to a theme report in 2021 of the Motion Picture Association. When more theaters reopened in 2021, the market had recovered somewhat, totaling $ 21.3 billion. But digital streaming services continue to increase in popularity, and now one of the largest cinema chains in the world feels pressure.
In the United States, there are more than 500 of these theaters in the United States.
September 7,Cineworld group belonging to the British Deposited for the protection of the bankruptcy of chapter 11 in the United States, you may not know the name "Cineworld"-even if it is the second largest cinema channel in the world, just behind the AMC, but You will surely recognize royal cinemas, which is the filial society.
There are over 500 royal cinemas in 47 American states, including Hawaii and Alaska. Even with such a great presence, however, the company has reported almost$ 8.9 billion in debt In 2021, according toThe New York Times.
Now Cineworld began the procedural process of Chapter 11 before the United States bankruptcy court for the South Texas District, according to the file.
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Cineworld says he has trouble staying afloat in the United States after the pandemic.
The company has acquired part of its debts while trying to "survive locking" which reduced the profits,The New York Times Reported, and the recent deposit indicates a "substantial decline" for the cinema giant. In 2020, Cineworld declared losses of $ 2.7 billion and in 2021, theyhad left another $ 556 million, according to CNN.AE0FCC31AE342FD3A1346EBB1F342FCB
In the file,MOOOky GREIDING, CEO of Cineworld, has spoken of the difficulties of the company, adding that it continues to feel the ramifications of COVID-19.
"We have an incredible team through the cineworld laser developed on the evolution of our company to thrive during the return of the film industry," said Greiding. "The pandemic was an incredibly difficult period for our company, with the forced closure of cinemas and a huge disruption of the film's schedules that led us to this point."
The company tries to continue operations by reorganizing.
Cineworld plans to stay in business and reduce its debts by reorganizing and restructuring, according to the file, and intends to "continue a real estate optimization strategy in the United States". This includes the negotiation of rental conditions with the owners, the positioning of Cineworld "for long -term growth".
"This last process is part of our current efforts to strengthen our financial situation and is looking for a detensifying detection which will create a more resilient capital structure and an effective company," said Greidinger.
"This will allow us to continue to carry out our strategy to reinvent the most immersive cinema experiences for our guests through screen formats and the most recent improvements and the most cutting edges of our flagship theaters", he adds. "Our goal remains to accelerate our strategy further so that we can increase our position as the" best place to watch a film "."
If you are used to your local regal cinemas place, you don't have to worry yet. Cineworld obtained a total of $ 1.94 billion in debtor funding in possession of existing lenders; As such, Cineworld plans to keep theaters open "as usual without interruption" during the restructuring process.
Better lifecontacted Cineworld to comment, but has not yet heard.
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