Cineworld: Whiteley cinema's future still uncertain as company fails to find buyer for UK and US businesses

Cineworld, which has an outlet at Whiteley Shopping Centre, has failed to find a buyer. The world’s second largest cinema chain, which also covers the Picturehouse chain in the UK, is trying to raise $2.26bn (£1.8bn) to exit bankruptcy protection.

They were approached by potential buyers in February, but none of them were willing to pay cash for the whole business. An update to shareholders published yesterday (Monday) said as Cineworld failed to secure an ‘all-cash bid significantly in excess of the value established under the proposed restructuring’, the sales process was ‘terminated’.

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A financial restructuring programme was announced yesterday, with the aim of dealing with its roughly $5bn debts. Lenders will be asked to provide roughly $1.46bn (£1.2bn) in new credit, as well as $800m (£651m) of equity to the lenders.

Despite the looming financial uncertainty, the group said it will operate in a ‘business as usual’ style. Mooky Greidinger, chief executive of Cineworld, told Sky News: ‘This agreement with our lenders represents a “vote of confidence” in our business and significantly advances Cineworld towards achieving its long-term strategy in a changing entertainment environment.

‘With a growing slate of blockbusters and audiences returning to cinemas in increasing numbers, Cineworld is poised to continue offering movie goers the most immersive cinema experiences and maintain its position as the “best place to watch a movie”.’

Cineworld expects to move out of bankruptcy protection during the first half of this year. While the planned has ended, the chain is looking to continue with an auction for its other assets elsewhere – under its “rest of the world” umbrella.

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The update to shareholders said: ‘Cineworld and its key stakeholders continue to consider the proposals that were received in respect of its 'rest of the world' business (outside the US, the UK and Ireland) and a process is underway with the bidders for the RoW Business to assess whether an acceptable sale transaction can be completed.’

Shares in the company have fallen by almost 99 per cent over the past five years, largely due to the rise of streaming and the Covid-19 pandemic forcing cinemas to close under social distancing rules.