Monday, November 18, 2024

Hundreds of jobs to be lost at Cineworld: report

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Sky News first reported the news that, according to sources in the City, Cineworld will announce a “restructuring plan” at the end of this week.

The report suggests this will mean around 25 Cineworld cinemas will be closed across the UK, with the loss of hundreds of jobs.

The Belfast Telegraph has approached Cineworld for comment.

The exact total number of jobs which will be cut was not specified in the reporting.

Cineworld runs around 100 sites across the country, including a large cinema at Belfast’s Odyssey Place.

Cineworld also operates the Picturehouse chain of cinemas.

The Sky News report said that 25 sites will be unaffected by the plans, with 25 others to close, and rent reductions asked for at another 50.

Some landlords are thought to oppose the plans, which will have to be approved by a majority of Cineworld’s creditors.

The reporting further suggests that Cineworld have explored the possibility of selling the business before focusing on a restructuring plan.

The company has been struggling with a multi billion-pound debt for several years, and was taken over by investors and hedge funds in 2023 who exchanged billions of pounds worth of debt for equity in the business.

Cineworld also filed for bankruptcy protection in the US, while it was the second largest cinema chain on the planet.

It filed for a Chapter 11 proceeding, which means that it was able to hold onto its assets and trade as normal while the bankruptcy progressed.

Cineworld was hit hard by the pandemic and the disruption caused to both box office revenues and film production.

The most recent accounts for the holding company that manages Cineworld, Cineworld Holdings Ltd, are for the year ending 31 December 2022.

In this accounting period, the group made a total comprehensive loss of almost £160m, after making a £4.3m profit in the prior period.

Cineworld opened their site in the Odyssey in December 2021, as part of a suite of renovations across the complex.

Work began in 2019, and saw changes made to the cinema area, as a well as new restaurants and bars added to the existing levels.

New businesses have continued to open up in what is now referred to as Odyssey Place, including the US burger chain Five Guys and the restaurant Nando’s.

Lost City Golf also opened in the venue, along with Italian food chain Zizzi.

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