Uncertain future for film fans as Cineworld files for administration

Troubled cinema chain Cineworld has said it will file for administration in the UK as part of a restructuring plan that is set to wipe out shareholders.

The world’s second-largest cinema chain said it will apply for administration for the London-listed company in July, which will see shares in the firm suspended.

But it stressed the move will not affect the British operations for the holding company, with cinemas continuing to remain open as usual.

It has 128 cinemas across the UK and Ireland including two in Aberdeen and others in Dundee, Edinburgh, Glasgow and Falkirk.

Cineworld filed for Chapter 11 bankruptcy in the US last year after being weighed down by its mammoth debts and weaker-than-hoped audience numbers.

Cineworld said: “Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration.

“The group and its brands around the world – including Regal, Cinema City, Picturehouse and Planet – are continuing to welcome customers to cinemas as usual.

“The group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.”

In April, the group also scrapped plans to sell its businesses outside the UK, US and Ireland after potential bidders failed to meet the value desired by Cineworld’s lenders.

It hopes to emerge from bankruptcy protection in July after receiving backing for its overhaul from most of its lenders.

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