Cineworld closes its doors once again
After nearly three months of business after having to close due to the coronavirus, the cinema giant Cineworld closes its doors across all theatres once again from Friday October 9th. This will take immediate affect to all chains across the UK, Ireland and the US.
This comes after Cineworld continued to loose profit for all their branches meaning that they had to take action to close before they would seriously run out of cash to even reopen again. The new James Bond film ‘No Time To Die’, which has now been set to release next year, also didn’t help the problem as without any new major blockbuster titles coming out soon, they couldn’t find the funds to keep running their cinemas to the public as stated by the Cineworld CEO. The news that they had to cut 45,000 jobs to employees across the world didn’t come in a heartily manner as it received an outrage from their employees who are left with zero hour contracts and a possible zero pay slip.
Who would’ve thought that a cinema complex as large as Cineworld could have gone into this kind of crisis? Even with their huge grants they received to help them stay open in the past two months. Well it definitely shows the true reality that thousands of business, even large companies, are facing during these times. The coronavirus has not only affected the lives of thousands worldwide but attacked a large portion of the worlds economy across all countries as Cineworld raked up a whopping $8billion debt to tackle. As the London stock exchanged opened up during their closure, it had reportedly halved its company value and are down by 40%.
Well, its not all bad news as this drastic change has been called temporarily according to Cineworld. On their official article on their website, they also mentioned that they will “continue to monitor the situation closely and will communicate our future plans to resume operations once film studios are able to bring their pipeline of major movie releases back to the big screen”. So from this it seems like they might not be able to open for a while yet as all current major releases have been rescheduled for next year meaning that cinemas aren’t able to bring in a profit from them. As well as that, do bare in mind that its not just Cineworld taking a big hit as hundreds of other cinema chains are being affected by this and may have to take the same action as Cineworld to close because of their being no movie line-up coming.