The Wall Street Journal reported on Friday that Cineworld Group, the owner of the world's second largest movie theater chain, will soon file for Chapter 11.
During Covids, a theater in New York was temporarily shut down.
The Wall Street Journal reported on Friday that Cineworld is preparing to file for Chapter 11.
Cineworld narrowly avoided Chapter 11 in 2020 after taking on debt to stay afloat, but movie theater attendance has been slow to recover from the PAIN of the past.
Cineworld warned that a lack of big-budget films in the fall is likely to further impact depressed attendance numbers.
Cineworld's share price went from a high of $2 per share earlier this year to a low of $0.15 per share in less than a year.
Sources told the Journal that the company is in talks with the lender as well as engaging lawyers and consultants to help with the process.
AMC Entertainment, Cineworld's largest competitor, saw its stock tank over 7%, now down more than 30% since the beginning of the year.
AMC CEO Adam Aron was positive about his company's prospects despite the bad news with Cineworld. He said that Cineworld/Regal had a fairly bleak outlook for its near-term performance. At AMC, we are very confident in our future.
Cineworld, unlike AMC, has struggled to raise capital. Thanks to its popularity, AMC has been able to tap into the retail investor crowd, most recently in the form of a special dividend which gives shareholders AMC preferred equity units.
If management takes advantage of irrational investor behavior, it pays to be ameme stock. He points out that AMC and Cineworld are both showing the same movies, but they are different in their approach. AMC has embraced the nonsense and has raised cash into the video game-like demand for its shares.
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