Cineworld set to file for administration in bid to keep troubled chain alive – and says Chesterfield cinema will stay open

Cineworld, the second-largest cinema chain across the globe, has confirmed that it will file for administration in an effort to slash its £3.9bn pile of debt – according to reports by the BBC.

The company suffered during the pandemic, when it was forced to close many of its sites – and is also battling against a number of major streaming services.

Cineworld is set to apply for administration next month – a move that will see shares in the company suspended and wipe out any existing shareholders.

The company stressed that their 128 cinemas across the UK – including their site at the Alma Leisure Park in Chesterfield – would remain open.

In a statement issued to BBC, a Cineworld spokesperson said: “Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration.

“The group and its brands around the world – including Regal, Cinema City, Picturehouse and Planet – are continuing to welcome customers to cinemas as usual.”

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Cineworld aims to reduce its debts by around £3.5bn with this financial restructure. The company has generated £628m already by selling rights in the business, and will be able to access a further £1.1bn of funding if needed.

The company filed for bankruptcy protection in the US last year, and now hopes to move away from this in July after their restructure is complete.