London Daily

Focus on the big picture.
Friday, Dec 26, 2025

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
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
×