London Daily

Focus on the big picture.
Friday, Aug 14, 2026

Cineworld shares plunge on bankruptcy fears

Cineworld shares plunge on bankruptcy fears

Shares in Cineworld have fallen more than 60% as concerns mount that the world's second largest cinema chain is about to file for bankruptcy.

The company, which also owns the Picturehouse chain in the UK, is struggling under $5bn worth of debt.

Like other cinema chains, Cineworld was hit hard by the pandemic.

Cineworld recently said post-Covid customers levels were lower than expected and blamed "limited" film releases.

The Wall Street Journal reported that Cineworld is preparing to file for bankruptcy, sending its share price tumbling.

Cineworld has been contacted for comment.

The firm had hoped blockbusters such as the latest Bond film, Top Gun: Maverick and Thor: Love And Thunder would draw audiences back after Covid restrictions.

But it said earlier this week: "Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.

"These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group's liquidity position in the near term."

Cineworld has 9,189 screens across more than 750 sites.

It operates in 10 countries, including the UK, the US, Poland and Israel, and employs more than 28,000 people.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said Cineworld had "failed to lure back enough movie goers to help pay back its enormous debts".

"Hopes had been raised that first spies, then superheroes, then fighter pilots would prove to be the magic bullets for the company but there simply haven't been enough blockbusters coming through to to break the spell of misfortune," she said.

But Peter Williams, a former non-executive director at Cineworld, told the BBC he thought cinema ticket prices were "too low".

"I've always felt that the ticket price or headline ticket price is almost too low really. I mean, it is still a very cheap night out," he said.

He added that while Cineworld is likely to face a major restructure, he believed that it would emerge as "a viable business".

"This is a big business and people still want to go out and go to the cinema."


Covid closures


The cinema industry was one of the worst hit sectors during the height of the pandemic with many theatres closed for extended periods or operating at reduced capacity.

Cineworld reported a huge loss for the first six months of 2020 after it was forced to temporarily close some cinemas, and movie studios delayed the release of some blockbusters.

The cinema giant warned in September 2020 that it might need to raise more money in the event of further coronavirus restrictions or film delays due to Covid-19.


Challenging times


Analysis by Steven McIntosh, entertainment reporter


Jurassic World Dominion, Top Gun: Maverick, Doctor Strange, Elvis and Minions: The Rise of Gru are among the major releases that have kept audiences coming through the doors at a time when cinemas are desperate to bounce back from their Covid losses.

Jurassic World Dominion is one of the biggest box office hits of the year so far

But Cineworld's owner argues there still haven't been enough to keep them afloat. They say their admissions are down because Hollywood has released fewer major films than would have been typical in a pre-pandemic summer. Total box office takings this year are down a third, or 32%, compared with the equivalent period in 2019.

The number of releases isn't the only factor. Streaming services have posed a threat to cinemas for many years, and the battle for content has become even more aggressive recently.

Netflix has spent hundreds of millions of pounds making films like The Gray Man and Red Notice, and releasing them straight into subscribers' homes.

As a result, cinemas have had to fight harder to convince customers that leaving their couch to see a movie is worthwhile.

The autumn and winter release schedule provides some hope - sequels to the hugely successful Black Panther and the even more successful Avatar will be released between now Christmas.

But it's telling that many other big releases are going straight to streaming services. In 2019, Disney released two successful live action remakes: The Lion King and Aladdin. But their next big one, Pinocchio, is going straight to Disney+

Newsletter

Related Articles

0:00
0:00
Close
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
Wildfires Surge Across England and Wales as Fire Chiefs Report Record July
UK Nurses Warn of Heat Risks as Hospital Staff Struggle With Extreme Temperatures
Southern Water Seeks Drought Order for Hampshire and Isle of Wight Amid Water Shortages
UK Heatwave Pushes West London Temperature to 38.1 Degrees as Health Alerts Continue
UK Economy Grows 0.4% in Second Quarter Despite Global Uncertainty
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
UK Residents Gather to Watch Rare Partial Solar Eclipse
Reform UK Deputy Leader Richard Tice Faces Criticism Over Legal Threat Against Guardian Journalist
Michael Forsyth Elected Speaker of the House of Lords
Cambridge Researchers Launch £20 Million Human Organoid Drug Testing Programme
Heathrow Loses European Passenger Traffic Lead to Istanbul Airport
Households Near New UK Electricity Pylons to Receive £250 Annual Energy Bill Discount
UK Government Estimates Zero-Hours Contract Ban Could Cost Employers Up to £3 Billion a Year
Robert Jenrick Leaves Conservatives for Reform UK in Major Parliamentary Defection
UK Police Chiefs Urge Government to Block Early Release of Andrew Harper Killers
UK Government Holds Emergency Cobra Meeting as Drought and Heatwave Raise Wildfire Risks
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
Police Conduct Cross-Border Raids Against Northern England Drug Network
Nicola Sturgeon Protested at Edinburgh Festival Fringe Event
Major UK Retail Chain Enters Administration With One Hundred Fifty-Four Stores Set to Close
Heathrow Renews Call for Runway Expansion After Losing Europe’s Busiest Airport Ranking
Government Condemns One Million Pound Thames Water Executive Bonus Amid Drought
NHS England Says More Than One Hundred Thousand Hepatitis C Patients Have Been Cured
UK Foreign Secretary Ed Miliband Calls for End to West Bank Settler Violence
UK Prepares for Deepest Partial Solar Eclipse Since Nineteen Ninety-Nine
UK Heatwave Triggers Amber Health Alerts as Economic Losses Reach Four Point Four Billion Pounds
UK Offers Electricity Bill Discounts to Communities Hosting New Power Infrastructure
Bank of England Expected to Hold Interest Rates at Three Point Seven Five Percent
UK Government Moves to Ban Subscription Traps and Misleading Retail Discounts
Andy Burnham Gives Councils New Powers to Block Betting and Vape Shops
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
Greater Manchester Councils Gain Powers to Restrict New Vape and Betting Shops
Coroner Finds Treasury Workplace Failures Contributed to Personal Assistant’s Suicide
English and Welsh Courts Ban Meta Smart Glasses Over Recording and Privacy Risks
Strait of Hormuz Disruption Could Double UK Inflation and Trigger Recession, Forecasters Warn
×