Parent company Regal Cinemas Cineworld is seeking asset sales

When COVID-19 hit the world, it forced many businesses to close, including the movie theater. Some theater companies have been saved, while others face bankruptcy and closures. CineWorld’s Regal Cinema chain is the first to be hit by the bankruptcy filings, with its parent company closing several theaters. As business progressed, Cineworld was forced to close even more theaters, including New York City’s Regal Union Square and the Sherman Oaks Galleria venue. Now it looks like the bankruptcy is worse than previously thought, and Cineworld is currently pursuing a sale of their business and all of their assets. According to deadlinethe theater company has reached about 30 buyers as it pursues a sale and initial bids begin next month on February 16.

The trade also notes that Cineworld revealed during their bankruptcy filing that they were pursuing “potential transaction parties,” including some of their competitors, and that if they were offered an offer they deem “a potential value-maximizing proposition,” a second stage of the process will begin issuing binding offers.” That said, while the future of Regal Cinemas and Cineworld is in doubt, the cinema business could potentially live on through new ownership.

News of a bankruptcy filing came back in August, with The Wall Street Journal also says that in the UK (where Cineworld is based) they are considering filing for insolvency proceedings. This is the latest in a series of serious problems for Cineworld, which avoided bankruptcy in 2020 as creditors were a little more understanding of the theater chain’s problems during the pandemic.

AMC Theaters eventually got a cash injection from the Internet, which turned the failing chain into a “meme stock” like Gamestop. Cineworld Chief Executive Mooky Greidinger told The Wall Street Journal that not every company was lucky enough to be lifted out of trouble by Reddit’s random whims.

“I think what happened to them is a really good thing for AMC. And you know, we trade in the UK market. Not every stock in the US market is a meme stock. did well,” Greidinger said, adding, “I don’t think any industry wants one of the big players in the industry to collapse. This isn’t good news for anyone.”

What do you think of the situation? Are you sad to see Regal Cinemas go out of business? Let us know in the comments below or by email hitting our writer @NateBrail on Twitter!

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