Regal Cinemas’ owner is preparing to file bankruptcy according to a recent report. The Wall Street Journal details how Cineworld is handling the current moment. The company is reportedly planning to file a chapter 11 petition in the United States. Over in the United Kingdom, they are considering filing for an insolvency proceeding. Their sources indicated that the chain is having trouble getting attendance all the way back up from the lows of the pandemic. Cineworld itself mentioned the troubles stretching back to theater reopening. Admission aren’t up to where projections had them at this point in the year. The limited slate of films certainly has something to do with it. But, the movie industry has fared better than expected since the doom and gloom proclamations of early 2020. The chain’s lender will likely fund the costs of this bankruptcy process. Strategic options to cut costs would include generating luquidity through selling off assets and restructuring debt. It’s unclear what would step into the void if the second biggest United States movie chain ended up shutting its doors for good.
