Cineworld shares plunged after reports the cinema chain was preparing to file for bankruptcy "within weeks."
Stock prices fell within minutes ofThe Wall Street Journalreported that the world's second largest film studio had hired a lawyer In he plummeted to his two thirds. Kirkland and Ellis and consultants from AlixPartnersprovide advice on the bankruptcy process.
Cineworld declined to comment. The report casts uncertainty on the future of thousands of workers in Britain's 127 cinemas. Cineworld employs approximately 28,000 people worldwide and operates in 10 countries.
Cineworld also owns the Picturehouse chain
(PA)
Philippa Childs , president entertainment and media union Bectu said: The UK film industry has been incredibly hit by her Covid-19 and this latest news will be very disturbing for film workers.
"We are doing everything we can to support our members during this difficult time and look to Cineworld to mitigate the impact of the bankruptcy proceedings on our employees.
The report said Cineworld is weighing options for strengthening its finances after blaming a "limited" film slate for its viewership slump in recent months. It was announced two days after it said it would.
The company also owns the UK picture house chain and the US Regal Cinemas, and is looking forward to releases such asTop Gun: Maverickand. I was. Batman and Thor: Love and Thunder help recover from the severe effects of the pandemic.
However, the company told the London Stock Exchange on Wednesday: These declines in attendance are due to a limited film slate expected to last until November 2022, which is expected to negatively impact transactions and the Group's liquidity position in the short term.
He said the company, which had $4.8 billion (£4 billion) of debt at the end of last financial year, was considering restructuring its balance sheet to protect its future. .
At the height of the pandemic, Cineworld temporarily closed UK cinemas and furloughed 5,500 workers.
