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Cineworld is filling for bankruptcy

British entertainment conglomerate Cineworld is considering filing for bankruptcy in the United States.
Cinema - unsplash

The company released a statement saying that a "voluntary Chapter 11 filing in the United States" was being considered as one of its "strategic options" for resolving its debt problems.

Cineworld, which owns the Regal Cinemas chain in the United States, is the world's second-largest cinema chain, with 9,518 screens across 790 sites in 10 countries: Bulgaria, Czech Republic, Hungary, Ireland, Israel, Poland, Romania, Slovakia, the UK and US.

The company said the financial difficulties in the United States were the result of decreased traffic due to weak repertoire and the impact of restrictions during the pandemic.

Despite the preparation of a bankruptcy petition, the company will continue to operate in the U.S. market as usual. All Regal Cinemas will continue to host guests, and the possible bankruptcy will not affect the company's employees in any way.

Last week, U.S. media reported that Cineworld was consulting with lawyers about a possible bankruptcy filing. The company's stock fell 80 percent after the publication, and lost another 20 percent the next day. In 2017-2019, Cineworld stock was worth more than $300; today the paper trades at $3.

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