Conditions are dimming at many movie theaters around the world.
Cineworld Group PLC, one of the industry's biggest theater operators, confirmed Monday that it's considering filing for Chapter 11 bankruptcy protection in the U.S., as it contends with billions of dollars in debt and more empty seats in front of its screens than expected.
To be sure, moviegoers have streamed back into theaters this year to see blockbusters like “Spider-Man: No Way Home,” “Top Gun: Maverick,” and ”Jurassic World: Dominion." Industry giant Warner Discovery has said it's doubling down on theaters and moving away from debuting films on its HBO Max streaming service.
Cineworld said it's holding talks with lenders and other major stakeholders as it reviews its financial options. It also said it expects “ultimately to continue its business over the longer term with no significant impact upon its employees." It has about 28,000 workers, according to the company's website.
Shares of other theater chains also stumbled Monday, but nowhere near as much as Cineworld. Cinemark Holdings fell 5.8% to $15.33, for example. This year, about a third less wide-release films have been put into theaters as before the pandemic. Some of that has to do with residual delays in Hollywood’s production pipeline caused by earlier COVID-19 shutdowns and postponements. But it’s also because a lot of movies go straight to streaming.
AMC's stock fell to $10.46 from $18.02 on Friday, though it had other factors impacting the shares. Monday marked the first day of trading for the company's new preferred equity units, which have the ticker symbol “APE.”
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