Cineworld Group, the owner of Regal Cinemas in the US, is preparing to file for Chapter 11 bankruptcy protection in the US, according to the Wall Street Journal. This year has been tough on the exhibitors and cinema owners as just two films, Top Gun –Maverick and Minions – The rise of Gru, could pull the audiences to theatres.
Top Gun Maverick starred Tom Cruise reprising his role of 20 years, and it was a magnet of sorts minting money at the box office. It is considered to be the highest grosser following Avatar. But Tom Cruise’s irresistible charisma and the appeal of Minions could not bail out the exhibitors from a frosty season.
Already, the exhibitors and cinema owners have had a tough time post-COVID, and Regal had been banking on post-COVID collections. However, nothing could salvage the debt-ridden company, which accrued a whopping $5 billion debt, owing to years of taking loans.
Though Cineworld, the second largest exhibitor, hasn’t made any direct statement following the Washington Post report, a statement from the company said that they were eyeing unspecified strategic options to pull it out of the doldrums.
Meanwhile, Cineworld is also considering an insolvency process in the UK, where the chain is equally popular.
