NATIONAL NEWS

The world’s second biggest movie theater chain is in trouble

Aug 19, 2022, 3:59 PM | Updated: Aug 23, 2022, 11:11 am
The Regal Cinema marquee in Times Square. (Roy Rochlin/Getty Images via CNN)...
The Regal Cinema marquee in Times Square. (Roy Rochlin/Getty Images via CNN)
(Roy Rochlin/Getty Images via CNN)

(CNN) — The owner of Regal Cinemas is having a tough time — its stock crashed as much as 80% Friday after reports that its parent company is preparing to file for bankruptcy.

British company Cineworld Group has spoken to lawyers at Kirkland & Ellis LLP to advise on the bankruptcy process in the United States and United Kingdom, according to a report by the Wall Street Journal.

The stock has recovered slightly, but is still 60% below its price at the start of Friday trading.

Earlier this week, Cineworld said in a press release that, despite a “gradual recovery of demand” since last spring, admissions were below expectations.

The company blamed a limited roster of films for the lack of moviegoers, a situation it expects to continue until the end of November.

The chain, which owns more than 500 movie theaters across the US, is exploring how to reduce its debt obligations, which it warned would “likely result in very significant dilution of existing equity interests” for shareholders.

Cineworld has struggled to stay afloat during the pandemic, when it was forced to close its movie theaters worldwide. It suffered a $2.7 billion loss in 2020, and $566 million loss in 2021.

It is a similar story for other movie theaters. So far this year, revenues at the U.S. box office are nearly 30% lower than before the pandemic, according to Comscore despite a big rebound, a media data company.

Cineworld declined to comment to CNN Business on the reports that it is considering filing for bankruptcy. Kirkland & Ellis LLP did not immediately respond to CNN Business’ request for comment.

— Frank Pallotta contributed reporting.


The-CNN-Wire™ & © 2022 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

Top Stories

National News

LOS ANGELES, CALIFORNIA - FEBRUARY 05: First Lady of the United States Dr. Jill Biden speaks onstag...
Lisa Respers France

Grammy winners 2023: See who won

Harry Styles won album of the year at the Grammy Awards, taking home the top honor on a night that Beyoncé dominated and became the ceremony’s most decorated artist.
1 day ago
LOS ANGELES, CALIFORNIA - FEBRUARY 05: Beyoncé accepts Best Dance/Electronic Music Album for “Re...
Scottie Andrew

Beyoncé officially has the most Grammys of any artist

Bey just became the most awarded artist in Grammys history, with a record 32 wins.
1 day ago
USU student Max Shulga during Saturday night's game....
Shelby Lofton

Utah State community responds to ‘Russia’ chants directed at Ukrainian player

Some USU students say that the Colorado State University students crossed a line that goes beyond simple trash talk during a game.
1 day ago
FILE (Sean Gallup/Getty Images)...
Associated Press

Judge: Banning guns for marijuana users unconstitutional

A federal judge in Oklahoma has ruled a federal law prohibiting people who use marijuana from owning firearms is unconstitutional.
1 day ago
Five lucky couples who get engaged at a Cracker Barrel restaurant will have the chance to win free ...
Zoe Sottile

Valentine’s Day proposals at Cracker Barrel might win you free food for a year

The restaurant chain has announced a romantic new venture for Valentine's Day. Five lucky couples will have the chance to win free Cracker Barrel for a year, according to its website.
1 day ago
Miami police unveiled a Black History Month-inspired vehicle wrap featuring the pan-African colors ...
Hannah Sarisohn and Eric Levenson

Miami PD unveil Black History Month-inspired vehicle wrap

The Miami Police on Thursday unveiled a Black History Month-inspired vehicle wrap that features the pan-African colors, outlines of the African continent, raised fists and kente cloth.
1 day ago

Sponsored Articles

vintage photo of lighting showroom featuring chandeliers, lamps, wall lights and mirrors...
Lighting Design

History of Lighting Design | Over 25 Years of Providing Utah With the Latest Trends and Styles

Read about the history of Lighting Design, a family-owned and operated business that paved the way for the lighting industry in Utah.
Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports...
Brian Huston, CE and Anthony Perkins, BICSI

Why Every Business Needs a Structured Cabling System

A structured cabling system benefits businesses by giving you faster processing speeds and making your network more efficient and reliable.
notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 Reasons You May Want to Consider Apartment Life Over Owning a Home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
The world’s second biggest movie theater chain is in trouble