Cinema chain Cineworld has said that its screens will remain open despite plans to file for administration next month.
The cinema chain was hit hard by forced closures at the hand of the COVID-19 pandemic and the Cineworld Group includes cinema brands Regal, Cinema City, Picturehouse and Planet.
The move will see Cineworld’s London-listed shares suspended and will wipe out shareholders in the company. The plan to file for administration is part of the chain’s restructuring plan to help reduce its debt levels.
Earlier this year, Cineworld outlined its commitment to selling the business as a whole but failed to secure a buyer.
The chain filed for bankruptcy protection in the US last year, but it is hoped that it will emerge from this next month following the restructuring of its finances.
In a Chapter 11 update document, 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.”
Susannah Street, head of money and markets at Hargreaves Lansdown told the BBC: “Given the shakeup of the movie industry and the might of the streaming giants, ticket sales will never fully recover to the heady days of the past, so focusing on the improving experience for die hard movie fans in a smaller number of more theatres is likely to the focus, to boost margins and increase ancillary spend.”