The parent company of Regal Cinemas, the second largest cinema operator in the USA, is looking for a financial lifeline.
Britain’s Cineworld is negotiating bailout or debt to investors to finance bankruptcy, the Wall Street Journal said.
The company said sales in the first half of 2020 fell 67 percent to $ 712 million. It has $ 4 billion in leasing liabilities and a total debt of $ 4 billion. Last month, after reopening in August, it reopened its more than 500 US cinemas.
In September, Cineworld said it had taken steps to improve its cash flow. However, staying closed could be cheaper than staying open with a few viewers. The observers were led by an unexpected performance of Christopher Nolan’s weekend premiere of Labor Day “Tenet” question whether cinemas would return even after the pandemic eased.
In the short term, many films will be shown directly on streaming services, completely skipping traditional cinemas. With more Americans tied to the couch demand production space has set off. In June, Blackstone negotiated with Hudson Pacific Properties on the development of a production facility in Los Angeles business awarded to $ 1.4 billion.
Meanwhile, the release dates of the films – including “James Bond”, “Dune” and the sequel “Top Gun” – have been postponed until 2021 and beyond.
AMC Entertainment Holdings, the largest cinema operator in the United States, said it would run out of cash by the end of the year if conditions did not improve.
[WSJ] – Georgia Kromrei