by Dan Lawrence | Posted in
You’d be forgiven for thinking that the post-pandemic resurgence of blockbusters means that entire movie theater chains have recovered from covid. But despite massive movies like Spider-Man: No Way Home, The Batman, and Top Gun: Maverick filling the theaters, one of the biggest theater chains is in trouble. Deadline writes that Cineworld, the world’s second-largest movie theater chain, which owns Regal Cinemas, has filed for bankruptcy.
Deadline got a report from The Wall Street Journal confirming Cineworld/Regal’s bankruptcy, and the London-based firm is in talks with law firm Kirkland & Ellis LLP and advisors AlixPartners to discuss how best to proceed. Considering that thanks to the return of blockbuster films to the big screen, the news that a large chain as Cineworld is in such a difficult situation, shows that the world of cinema is still on the agenda. the way to recovery.
Regal’s owner Cineworld’s plan to file for bankruptcy is due to entry rates not being as high as the company had expected after it reopened last spring. “Despite the gradual recovery of demand since reopening in April 2021, recent entry levels have fallen short of expectations,” the company said. “These low entry levels are due to a limited list of films expected to continue through November 2022, which is expected to negatively impact trading and the Group’s liquidity position in the short term.” In short, despite the big hits Top Gun: Maverick and Doctor Strange in the Multiverse of Madness, There just aren’t enough supporting movies that pull in audiences, showing the aforementioned signs of a blockbuster revival. These films show that the audience’s appetite for cinema is still strong, and there is only partially enough content to consume in theaters. Due to delayed shooting caused by the covid pandemic. Meanwhile, streaming services continue to deliver a consistent list of content, albeit without its own issues like Netflix’s drop in subscriber numbers.
Cineworld has a massive 751 cinemas in 10 countries, including Regal Cinemas. Regal operates in 42 US states, including American Samoa, the District of Columbia, Guam, and Saipan, and its Cineworld subsidiary has more than 6,000 screens in 505 theaters and is a major contributor to Cineworld’s global operation. The Hollywood Reporter states that Cineworld Group’s net debt stood at an alarming $5 billion level as of last July, and the bankruptcy filing of Regal owner Cineworld shows that the chain has not yet fully recovered. The saddest consequence of this action will be the threat it poses to the livelihoods of the numerous employees who help operate the theater chain’s worldwide sites.
Following the sad news that Regal owners Cineworld filed for bankruptcy, CNBC reported that the company’s share price dropped 60%. The implications of this news and how it will affect rival chains are not yet clear, and we hope rival cinemas will survive the remaining lean broadcast schedule of 2022 and prosper from full schedules in 2023 and beyond. After all, no matter how big streaming has been in the movie world, cinemas are still the backbone of the movie industry. Theaters support an immeasurable number of employees, not only in theater chains but also in movie studios. Without theaters, movie companies would also go bankrupt. Hopefully, something can be done to save Regal.