(RTTNews) – Cineworld Group plc (CINE.L) confirmed Monday that it will temporarily suspend operations at all of its 536 Regal theatres in the US and its 127 Cineworld and Picturehouse theatres in the UK from Thursday, October 8. These closures will impact approximately 45,000 employees.
The decision was based on an increasingly challenging theatrical landscape and sustained key market closures due to the COVID-19 pandemic.
In the U.S., major markets, mainly New York, remained closed. Without guidance on reopening timing, studios have been reluctant to release their pipeline of new films.
Without these new releases, Cineworld said it cannot provide strong commercial films for customers in both the US and the UK, its primary markets, necessary for them to consider coming back to theatres amid Covid-19.
Mooky Greidinger, CEO of Cineworld, said, “….Cineworld will continue to monitor the situation closely and will communicate any future plans to resume operations in these markets at the appropriate time, when key markets have more concrete guidance on their reopening status and, in turn, studios are able to bring their pipeline of major releases back to the big screen.”
As announced earlier, the company is assessing several sources of additional liquidity and all liquidity raising options.
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