Cineworld confirms it is looking at filing for bankruptcy - will Chesterfield cinema remain open?
Bosses at Cineworld have moved to reassure customers in the UK and Ireland as reports reveal the company is considering filing for bankruptcy.
The future of Cineworld’s Chesterfield branch looked under threat last week following revelations made in a Wall Street Journal report.
The Times also reported that the world’s second-largest cinema operator was ‘set to shut cinemas’ and ‘shake up’ the boardroom.
Cineworld has since taken steps to reassure customers in the UK and Ireland by issuing a statement on social media.
A post on its Twitter read: “All of our Cineworld cinemas are open for business as usual, and we continue to welcome Cineworld Unlimited members and all of our customers, across the UK and Ireland.
According to the Wall Street Journal, Cineworld Group Plc has struggled with rebuilding audience figures following the pandemic.
Other media has said the company’s market value has more than halved and that Cineworld blamed a lack of blockbuster films.
Cineworld bosses confirmed on Monday (August 22) that they are considering a voluntary Chapter 11 filing in the US in an effort to cut the chain's £4 billion debt pile.
Chapter 11 is often referred to as reorganisation bankruptcy and does not mean the end of the line for a company.
The filing allows a company to continue operating while it works out a plan to repay creditors and protects it from foreclosure and repossessions.
General Motors and Marvel Entertainment are among those companies which have bounced back after a Chapter 11 filing.