British cinema operator Cineworld has cancelled plans to sell its operations in Central and Eastern Europe and Israel. It was not satisfied with the level of offers, Reuters reported today. The second-largest cinema operator after U.S. chain AMC Entertainment placed most of its business under bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code last September.
The company’s business activities in the Czech Republic, Slovakia, Poland, Hungary, Bulgaria, Romania and Israel, which fall under the “rest of the world” column of its business, are not protected from bankruptcy. They accounted for about 13 percent of the company’s revenue in 2021.
Failed to find a buyer
Earlier this month, Cineworld scrapped plans to sell its business in the United States, Britain and Ireland because it was unable to find a buyer. The company had submitted a reorganisation plan to reduce debt by $4.53 billion (96.7 billion kronor) and secure $2.26 billion to get the business out of bankruptcy.
Cineworld operates in ten countries and employs around 30,000 people. According to its website, its Cinema City unit in the Czech Republic operates 12 multiplexes and one megaplex in seven cities, namely Prague, Brno, Liberec, Pardubice, Plzeň, Ústí nad Labem and Ostrava.
Investor slump
At the time of the covid-19 pandemic, the company was hit by restrictions on the movement of people, as well as a lack of attractive film titles. Cineworld’s share price has plunged by more than 90 per cent in the past year, largely due to investor concerns about the future of the business.
source: ČTK
