One of the largest cinema businesses in the world, Cineworld is set to file for bankruptcy according to news reports.
They are the second largest cinema business in the world and are also considering filing insolvency proceedings in the UK according to the Wall Street Journal.
The company has over 751 sites throughout 10 countries and bosses are now assessing options to shore up finances.
The company failed to get people in the doors post-lockdown, and the company’s market value more than halved after the pandemic with debts of more than £4 billion. Its losses soared while cinemas were shut during the global coronavirus crisis.
The company has hired lawyers and consultants to advise on the process. Reports at the minute say that Cineworld is ‘negotiating with its lenders to fund the costs of the bankruptcy process’.
This is not the first time that the company has faced bankruptcy as they were saved from it back in 2020 lockdown by creditors.
According to a statement: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”