Cineworld ditches sale of UK, US businesses after failing to find buyer
Cineworld has abandoned plans to sell its cinema businesses in the US, UK, and Ireland after failing to find a buyer.
The cinema chain operator also announced that it has made a conditional deal with lenders to exit bankruptcy.
The company, which owns the Picturehouse chain in the UK, intends to raise $2.26bn of new funding to turn around the business, including restructuring its debts. The proceeds will be used to support the company’s long-term strategy in the changing entertainment industry, according to Cineworld’s CEO Mooky Greidinger.
The cinema industry has been one of the hardest hit by the pandemic, with many cinemas forced to close for extended periods or operate at a reduced capacity due to social distancing rules.
This has led to a significant drop in revenue and a huge loss for Cineworld in the first six months of 2020.
Cinema chains have also been facing tough competition from streaming services, which soared in popularity during lockdowns. However, with lockdown restrictions easing, cinema chains have seen large audiences drawn by the latest Hollywood blockbusters.