Major cinema chain to shut doors TOMORROW leaving fans devastated
A MAJOR cinema chain will shut its doors for good tomorrow, devastating locals.
Cineworld‘s site in Glasgow Parkhead is set to permanently shutter on October 6.
In a Facebook post Cineworld said: “After years of providing movie lovers with a place to feel more, we have made the difficult decision to close Cineworld Glasgow Parkhead.
“Thank you to all of you movie-loving customers for choosing us over the years. We hope you continue to enjoy watching movies at our local cinemas”
Locals were quick to chime in and share their heartbreak at the popular cinema’s closure.
“I am so saddened by this news, I love this cinema, I go at least once a week and find all the staff very nice and helpful,” said one.
Another said: “Gutted I’ve been going to this cinema since I was young.”
While a third described the news as “brutal”.
Cineworld confirmed this week it would close five locations across the UK.
Bosses at the troubled entertainment group have been pushing for the closures since July, but the move needed to be approved by the courts first.
The reduction in its portfolio forms part of a major restructuring plan to keep the company’s head above water.
Just this week, a judge gave the go-ahead for £16million to be injected into Cineworld’s four companies which form the business.
The cash came from the business’s parent company, with an extra £35million to also be made available.
Its four companies. Cine-UK Ltd, Cineworld Cinemas Ltd, Cineworld Cinema Properties Ltd and Cineworld Estates Ltd, will also negotiate leases for each of their 101 sites across the UK.
The five sites will shut for good on these exact dates:
- Glasgow Parkhead (closing October 6)
- Bedford (closing October 6)
- Swindon Regent Circus (closing October 6)
- Loughborough (closing October 13)
- Yate (closing October 13)
It comes as the chain is also said to be renegotiating rent agreements for around 50 of its sites.
Struggling businesses often do this to help lower their operating costs and help retain more of their brick-and-mortar estate.
However, landlords don’t need to accept what’s put forward in these discussions
This means that up to 50 additional Cineworld complexes could also be at risk of closure if the chain and its landlords cannot reach an agreement.
What else has happened at Cineworld?
This development follows a long period of trouble at Cineworld.
Just last year the business emerged from Chapter 11 bankruptcy in the US.
Filing for a Chapter 11 bankruptcy means a company intends to reorganise its debts and assets while remaining in business.
The company’s shares plunged almost 99% in the five years to 2023, as it was hit particularly hard by the pandemic and the enforced closure of its cinema sites.
Shortly after, Cineworld’s UK arm collapsed into administration on July 31.
The cinema chain was delisted from the London Stock Exchange a day later.
When a company enters administration in the UK, all control is passed to an appointed administrator, who must be a licensed insolvency practitioner.
A lot of major cinema chains have struggled following the pandemic, as customers got used to streaming films from home.
Big blockbusters such as the Barbie Movie and Oppenheimer drove punters back to the movie theatre last year, but it has not been enough to keep some venues afloat.
What is happening across hospitality and the cinema sector?
CINEWORLD isn't the only chain that's struggling.
Odeon confirmed it would close five of its branches in May last year.
Empire Cinema also closed multiple sites in 2023 after falling into administration in July of the same year.
The company made the decision following “a thorough assessment of all available options”.
The hospitality sector has been struggling too.
In April, family favourite restaurant chain Whitbread revealed it was set to shut more than 200 locations and axe 1,500 jobs.
It shared the plans in its full year results, saying it planned to convert 112 restaurants into hotel extensions while closing 126 “loss-making” venues.
Pub giant Wetherspoons has been closing boozers across the UK too, and Byron Burger fell into administration last year.
In March, pizza giant Papa Johns said it would close dozens of locations.