Is Cineworld closing down? Cinema chain with branch in Sheffield preparing to file for bankruptcy

Cineworld are expected to file for bankruptcy after their shares have fallen by over 60% as a result of the COVID-19 pandemic, according to The Wall Street Journal.

As cinemas were not allowed to open during the lockdowns, their finances suffered dramatically as a result.

Currently, there are 102 Cineworld sites in the UK and Ireland, with almost 1,100 screens within them - including one in Sheffield, which is located in Valley Centertainment.

The company was founded by Steve Weiner in 1995 and has its base of operations in London. They opened their first cinema in 1996.

The company also owns the Picturehouse chain in the UK, which is likewise under threat at this current moment.

The group claimed that they had expected a larger turnout of cinema goers after the COVID-19 pandemic and lockdown.

However, the amount of people who went out to see a movie this summer did not meet their expectations. As such, they have failed to meet their projections and have been left mired in debt.

They expect that their downturn in finances will continue through 2022, due to “limited” film releases.

How much debt is Cineworld in?

At the conclusion of the last financial year, Cineworld Group was in roughly £4 billion of debt.

On the subject, a spokesperson for Cineworld said: Cineworld said: “The group’s business operations are expected to remain unaffected by these efforts and Cineworld expects to continue to meet its ongoing business counterparty obligations.

“Cineworld continues to welcome guests to its cinemas across its global markets as normal, without disruption.”

What is the Cineworld share price currently?

The market value of Cineworld almost halved on Wednesday, however matters got worse on Friday as the share price slumped by more than 81-percent.

It is currently valued at a staggeringly low 1.8 pence per share.

Before the COVID-19 pandemic, Cineworld were trading at £1.97, as well as holding a market value of £4.4 billion, which is a drop off of 88% as the company is now priced at £50 million.