Troubled cinema chain Cineworld is preparing to file for bankruptcy ‘within weeks’.
The company, which owns two cinemas in York, has hired consultants to advise it on the bankruptcy process, the Wall Street Journal has reported.
As well as the Cineworld brand, it owns Picturehouse Cinemas, which operates City Screen off Coney Street.
A giant Cineworld opened at the York Community Stadium in December 2019. The 13-screen venue includes an IMAX screen, the Screen X 270-degree viewing experience and a VIP area.
The company’s shares dived by two-thirds within minutes of the bankruptcy article.
Cineworld has declined to comment.
It comes two days after Cineworld said it is assessing options to shore up its finances after it blamed a “limited” film slate for weak audience numbers in recent months.
The company, which also owns Regal Cinemas in the US, had pinned its hopes on releases such as Top Gun: Maverick, The Batman and Thor: Love And Thunder to aid its recovery from the heavy impact of the pandemic.
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However, it told the London Stock Exchange on Wednesday: “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.”
The business, which was saddled with £4 billion of debt at the end of the last financial year, said it was considering restructuring its balance sheet to protect its future.
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