Cineworld Group Plc is preparing to file for bankruptcy within weeks after struggling to rebuild attendance from pandemic lows, according to a report in the Wall Street Journal.
Cineworld also operates the Picturehouse chain and has more than 100 cinemas in the UK in total, including the cinema in Llandudno Junction.
The firm is said to have engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process.
The company is believed to be struggling under $5bn worth of debt. Like other cinema chains, Cineworld was hit hard by the pandemic.
Cineworld recently said post-Covid customers levels were lower than expected and blamed “limited” film releases.
It comes after Cineworld warned audience numbers have been weaker than expected and predicted they will stay low until November due to “limited” film releases.
In a statement the firm said: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”
Cineworld added that it will ‘continue with cost-saving plans’ but will also ‘look at new options to improve its financial position’.
