Cineworld Group re-closes nearly 700 of its cinemas

Cineworld Says It’s Considering Temporarily Closing Regal Cinemas In US, UK

Cineworld Group re-closes nearly 700 of its cinemas

Cineworld Group, owner of Regal Cinemas, will close all of its US and UK cinemas from October 8. As a result of this decision, about 45 thousand network employees will temporarily be out of work..

This news came just a few days after of how the premiere of the latest James Bond movie was pushed back to spring 2021, a major blow to the film industry. The second wave of coronavirus continues to rage across many U.S. states and across the UK.

The company said it could not provide clients with the full range of large commercial film projects until the Covid-19 epidemic looses its grip.

Director of Vue cinemas Tim Richards said that the main problem of the industry is that cinemas simply have nothing to show to the audience. He fears that the regional part of the business may suffer from prolonged downtime so much that it will have to be closed..

The Cineworld Group owns 127 cinemas in the UK and 536 cinemas in the US. It is the second largest business in the world in this segment after AMC.

Cineworld Group re-closes nearly 700 of its cinemas

Cineworld’s decision to re-close has rekindled fears over the company’s ability to weather the pandemic. Its shares fell more than 42% in today’s trading. In 2020, the overall fall in the group’s securities amounted to 80%.

The news came as a surprise to many at Cineworld. Team Cinema Action Group tweeted that no staff consultations were held.

Cineworld Group re-closes nearly 700 of its cinemas

After tough restrictive measures around the world, the group began reopening cinemas in July using new security protocols.. Cineworld Group finds it difficult to predict when cinemas will open their doors.

«The group will continue to monitor the situation closely and communicate its actions and plans based on specific guidance regarding the pandemic situation.», – said in a statement from the CEO Flour Granger.

Last month Cineworld reported a loss of $ 1.6 billion in the first half of 2020 as revenue fell 67%. The group also warned of the need to raise additional funds in case the second wave of coronavirus leads to a protracted business closure.. The company is exploring several sources of additional funding, and various options for increasing liquidity.

Many major premieres including «Black Widow», «Argument» and «Wonder Woman 1984», were either transferred, or were released only in digital format, as in the case with a disney project «Mulan».

Cineworld Group re-closes nearly 700 of its cinemas

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