Cineworld to Close Hinckley Cinema as Part of Restructuring Plan

Cineworld has announced the closure of its Hinckley cinema as part of the first phase of its restructuring plan. The closures will also affect cinemas in Glasgow Parkhead, Bedford, Loughborough, Yate, and Swindon Circus over the coming months.

The company has started a consultation process with employees at these locations, aiming to offer as many redeployment opportunities as possible to nearby sites.

Although the final number of affected sites remains uncertain until the restructuring process is complete, sources indicate that Cineworld, which operates around 100 cinemas across the UK, plans to close 25 locations. The restructuring plan, pending court approval, is expected to take effect in September.

Cineworld stated that the decision to close these six cinemas was due to their ‘commercially unviable’ status, as part of efforts to return the business to profitability. The plan also includes negotiations with landlords to reduce rental costs, as market rents for cinemas have decreased in recent years, resulting in some Cineworld rents being above the market rate. Landlords of marginal and loss-making cinemas are being asked to adjust rents to current market levels.

While the exact number of Cineworld sites requesting rent reductions is unclear, previous reports suggest it could be as many as 50. A Cineworld spokesperson explained, “We are implementing a Restructuring Plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the Group, and ensure a sustainable long-term future for Cineworld in the UK.” During the restructuring process, Cineworld’s cinemas will continue to operate as usual, and the plan will not impact its business outside the UK. The company is being advised by AlixPartners.

Despite the announced closures, other cinema operators may step in to take over these locations. Tim Richards, chief executive of Vue, expressed interest in potentially acquiring sites from rival operators, emphasizing that the locations would need to complement Vue’s existing circuit.

The announcement of the closures follows customer complaints about Cineworld’s pricing, with many claiming that the cost of a family trip to the cinema has become prohibitively expensive.