Cineworld is reportedly in talks of merging with rival Cineplex

The ailing cinema giant Cineworld, which recently filed for bankruptcy after admission were ticket sales unlikely to recover brought to pre-pandemic levels could be merged with its rival Cineplex WSJ reports.

cinema worldpart of the world’s second largest movie theater chain, filed for Chapter 11 bankruptcy in the US after several years of struggling to stay afloat.

The merger could see Canadian company Cineplex and Cineworld’s Regal merge, securing the brand and its venues.

Cineworld’s shares rose as much as 11% on these reports, but have since declined.

The national cinema chain was hoping blockbuster films like The Batman and the latest installment of James Bond would boost numbers coming out of lockdown.

Why did Cineworld go bankrupt?

Huge debt was taken on to help Cineworld survive the drop in attendance caused by the pandemic, while previous loans were used to buy Regal in 2017.

The chain’s debt was nearly $9 billion at the end of 2021, while the company’s value was just $40 million.

Cinemas are also facing increased competition from streaming platforms.

Is Cineworld closing?

In a statement, Cineworld said, “Cineworld would expect to continue its operations as normal up to and following a filing and ultimately to continue its business longer term without a material impact on its employees.”

The chain’s UK venues remain open to customers. Cineworld is reportedly in talks of merging with rival Cineplex

Fry Electronics Team

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