Cineworld plans to sell its British cinema operations in a blockbuster deal | Business News

Cineworld, one of Britain’s largest cinema chains, is currently in talks about a potential sale of its UK operations as part of a strategic review that may lead to a significant restructuring of the business. The company, which operates over 100 sites in the UK and employs thousands of people, has engaged with advisors to explore options for its future.

AlixPartners, the restructuring adviser that handled Cineworld’s insolvency processes last year, has been brought in to assist with the potential sale. While the sale process is expected to run for several weeks, there is also the possibility of a company voluntary arrangement (CVA) being considered, which could result in the closure of some UK cinemas.

Cineworld, under the leadership of the Greidinger family, expanded globally through acquisitions such as Regal in the US. However, the company faced financial challenges, leading to Chapter 11 bankruptcy protection in 2022 and delisting from the London Stock Exchange.

The sale process specifically pertains to Cineworld’s UK business, with potential bidders already showing interest. Rival Vue is also expected to evaluate the possibility of a bid. Following a restructuring and the appointment of a new leadership team, including a new CEO and chairman, Cineworld is navigating its way through these challenging times.

As the cinema industry prepares for major summer releases, including highly anticipated films like Despicable Me 4 and A Quiet Place: Part One, the future of Cineworld’s UK operations remains uncertain amidst these ongoing discussions.