CINEWORLD – the second largest chain of cinemas in the world – has given an update on its future.

It comes after the business filed for chapter 11 special bankruptcy in the US in September last year in a bid to buy time to restructure its business.

This was to allow the debt-ridden chain the chance to bounce back from its current woes, caused in part by the pandemic and a lack of popular recent films.

Cineworld’s cinemas in the UK, including the firm’s flagship cinema in Warrington within Time Square leisure complex, remained open to trade throughout the period of bankruptcy.

Cineworld opened its impressive Time Square venue in December 2019, and Warrington Guardian readers said the thought of it possibly closing would be a ‘huge blow’ for the town.

One said: “It is such a shame. Whenever we have been in, it has never been full, and it is a very good cinema. It would be sad to see it close. It has been nice having a cinema in the town centre again.”

Another commented: “It is a cracking cinema, dead handy and easily accessible. It would be a huge blow to the area if it closes just more than two years since opening.”

Cineworld, which runs 127 cinemas in the UK, has said it hopes to be back from bankruptcy protection before the middle of the year.

However, the debt-ridden business expects any deal with its creditors will wipe out its shareholders.

Warrington Guardian:

The cinema chain said that it had been approached by a number of potential suitors, but none of them had been willing to pay in cash to buy the whole business.

Cineworld may have been hoping for a sale, but it was always seen as unlikely that it would find someone who was willing to take over the business and deal with its £5billion debt.

A spokesman said: “The company has now received non-binding proposals from a number of potential transaction counterparties for some or all of the group's business.

“None of these proposals involves an all-cash bid for the entire business.

“The company is reviewing such proposals in conjunction with its advisers and key stakeholders, and while no decision has been made as to whether to pursue a sale transaction, and the terms of any such transaction remain uncertain, based on the proposals received to date it is not expected that any sale transaction will provide any recovery for the holders of the company's equity interests.”

It has been a tough couple of years for the cinema business, despite recent blockbuster releases such as Top Gun: Maverick, The Batman and Thor: Love and Thunder.

Cineworld previously told investors that, while demand has recovered a little following the pandemic, recently customers have not been flocking to cinemas in the numbers that had been expected.

Chief executive Mooky Greidinger said: “The pandemic was an incredibly difficult time for our business, with the enforced closure of cinemas and huge disruption to film schedules that has led us to this point.”