Cineworld, a leading UK cinema operator, has revealed plans to close six of its sites as part of a wider restructuring plan (RP) aimed at revitalising the company’s financial health.
Sites set to close include Glasgow Parkhead, Bedford, Hinckley, Loughborough, Yate and Swindon Circus.
The closure announcement comes as Cineworld grapples with what it describes as “increasingly high and unsustainable operating costs.” The company’s restructuring efforts extend beyond these closures, including a strategy to renegotiate lease terms and reduce rents to market levels at selected sites in the UK.
Cineworld’s proposed restructuring plan is expected to take effect in late September 2024, if approved by the court. The plan aims to provide the cinema chain with access to additional funding, reduce liabilities and support a major capital expenditure programme in the UK.
Employees at affected sites will enter into a consultation process, with Cineworld pledging to offer redeployment opportunities to nearby sites where possible. The company confirmed that the total number of affected sites remains fluid until the restructuring process is complete.
A Cineworld spokesperson said: “We are implementing a restructuring plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the group and ensure a sustainable long-term future for Cineworld in the UK.”
The restructuring will not affect Cineworld's operations outside the UK, and the company confirmed that all of its UK cinemas will continue to operate as normal during the restructuring period.
The closure of these six Cineworld sites follows recent closures within the company’s Picturehouse chain. In June, Picturehouse confirmed the closure of three London sites – Fulham Road, Stratford East and Bromley Picturehouse.
