Cineworld Group, the operator of a cinema chain, is reportedly planning to shut down about 25% of its 100 UK locations and seek rent reductions at another 50 as part of a significant restructuring effort, according to Sky News.
This move follows Cineworld's substantial debt burden, which led the company to file for administration in the UK last year and halt trading on the London Stock Exchange. Cineworld is anticipated to detail these proposals to its creditors, including landlords, in the near future, Sky News sources indicate.
The insolvency process adopted by the cinema operator is expected to involve a restructuring plan rather than a company voluntary arrangement, the report notes. In response to Reuters, a Cineworld spokesperson stated via email, "We continue to review our options but we don’t comment on rumours and speculation."
