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Huge new cinema chain could launch in UK as former Cineworld boss plots comeback after old firm went bankrupt
But six Cineworld chains have been slated for closure
A HUGE new cinema chain could launch in UK - as a former Cineworld boss plots a comeback after the firm went bankrupt.
Mooky Greidinger's Cineworld empire was buried under a pile of debts during the Covid-19 pandemic.
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He is now reportedly mulling plans for a new chain which would take over some of Cineworld's 100 venues across Britain and Ireland.
The tycoon recently flew into the UK for talks with some of Cineworld's landlords.
But some of the landlords are reportedly fuming over demands for rent cuts.
They are said to face a choice between going along with the cuts or booting out Cineworld.
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Six closures have already been announced as Cineworld undergoes brutal "restructuring".
A source close to Greidinger told : "We intend to come back."
Cineworld collapsed into administration in July last year after piling up a £4billion debt pile.
A group of Wall Street hedge funds led by Travelodge owner GoldenTree seized control of the cinema chain.
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Nine of the chain's UK landlords are local councils, some of which face big financial problems of their own.
Greidinger is widely seen as one of the biggest cinema supremos of his generation.
Why are shops closing stores?
He joined his family's Israel-focused cinema chain in the 1970s before expanding it into central Europe.
Cineworld rocketed into the FTSE 100 after borrowing huge sums to fund a $3.6billion (£2.74billion) takeover of US chain Regal in 2017.
The chain then agreed a $2.1billion ($1.6billion) takeover of Canadian chain Cineplex in 2020.
But the huge deal fell apart as cinemas shut at the start of the covid-19 lockdown.
Cineworld ranked as the world's second-biggest cinema chain at its peak.
The chain has now been broken up into regional chunks after filing for bankruptcy in the US.
Which Cineworld cinemas are closing?
Here are the cinema locations that are set to close - exact dates they will be closing their doors for good has not yet been decided.
- Glasgow Parkhead
- Aspects Leisure Park, Bedford
- Hinckley, Leicestershire
- Loughborough, Leicestershire
- Yate, Bristol
- Swindon Circus, Wiltshire
What happens next?
Cineworld's creditors and landlords are expected to formally receive the plans tomorrow (July 26).
A creditor is an individual, business, or financial institution to whom the company owes money or is obligated to repay a debt.
It was previously reported that Cineworld's restructuring is expected to be carried out through a specific insolvency mechanism rather than a company voluntary arrangement (CVA).
Insolvency mechanisms aim to either rescue the company, liquidate it, or achieve the best return for creditors.
A CVA specifically aims to allow the company to continue trading while repaying its debts over time.
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As of July 2024, the cinema chain operates 100 Cineworld branded screens across the UK and Ireland as well as a further 28 under the Picturehouse brand.
For now, the chain's screens remain fully operational and open as usual.
Why are so many cinemas closing?
CINEWORLD isn't the only chain that's struggling.
Odeon confirmed it would close five of its branches in May last year.
Empire Cinema also closed multiple sites in 2023 after falling into administration in July of the same year.
The company made the decision following "a thorough assessment of all available options".
The hospitality sector has been struggling too.
In April, family favourite restaurant chain Whitbread revealed it was set to shut more than 200 locations and axe 1,500 jobs.
It shared the plans in its full year results, saying it planned to convert 112 restaurants into hotel extensions while closing 126 "loss-making" venues.
Pub giant Wetherspoons has been closing boozers across the UK too, and Byron Burger fell into administration last year.
In March, pizza giant Papa Johns said it would close dozens of locations.
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