- In 2021 the theaters reopened, but the brand has not managed to recover the levels of viewers prior to the pandemic.
- Revenues are still well below those obtained before covid and, furthermore, the situation is not expected to change in the remainder of 2022.
- The novelty also impacts the AMC cinema chain, which will go public this Monday.
In 2021, the total income of Cineworld Group they stood at around 1.8 billion dollars, 112 percent more than the 852 million dollars reported in 2020 (the year of the pandemic).
Despite the increase, the 2021 figure is 42 percent less than the revenue of the holding company in 2019, before covid.
The scenario worries the world’s second-largest cinema chain because it shows that the return to theaters is going to be much slower than expected.
In this context we must analyze the news of this Monday: cineworld It analyzes among its strategic restructuring options a possible voluntary presentation of suspension of payments in the US, as well as relief procedures in other jurisdictions.
In other words: You are on the verge of filing for bankruptcy.
In this way, the company of British origin confirms the journalistic versions spread last week by The Wall Street Journal.
Indeed, the American media reported on the possibility of Cineworld making a voluntary Chapter 11 filing.
Cineword said in a statement Monday that is in talks with all the interested parties, a universe in which the creditors are included.
In addition, he said that any decision he makes will be in search of liquidity in the short term while he hopes to ensure the continuity of operations in the usual way.
He also said that he hopes to stick with theaters in the long run and that whatever is decided would not (potentially) have a significant impact on his employees.
Warning to the bag by cineworld
According to the WSJ publication, cineworld he had warned the London Stock Exchange that, despite the gradual recovery in demand with the reopening of cinemas in 2021, “the level of tickets is well below expectations.”
Among the arguments, he spoke of “limitations on movie releases”, something that the company expects to continue until November 2022.
All of this, according to cineworldwill have a “negative impact” on the business and liquidity positions of the holding company in the short term.
The actions of AMC Entertainment Holdings plummeted nearly 40 percent in the premarket on Monday, August 22, after the warning of cineworld about a possible bankruptcy will scare investors just before the IPO of the American cinema chain.
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