Luton cinema at risk as Cineworld looks for new buyer

The fate of Luton’s Cineworld is still hanging in the balance as its parent company tries to find a buyer for the business.

The cinema chain Cineworld fell into administration last Autumn and has now issued an update as it looks to find a buyer. It announced it has a number of potential buyers, but none are willing to pay for the whole business, which is currently £5billion in debt.

Should it fail to find a buyer, it could put a total of 129 cinemas, including the one in Luton at the Galaxy centre, at risk of closure. Cineworld also employs around 28,000 workers globally.

The brand has said it hopes to recover from bankruptcy protection before the middle of 2023 and is still fully operational. However, its future remains uncertain while proposals are reviewed.

A spokesperson for Cineworld said: "The company has now received non-binding proposals from a number of potential transaction counterparties for some or all of the group’s business.

"The company is reviewing such proposals in conjunction with its advisers and key stakeholders and, whilst no decision has been made as to whether to pursue a sale transaction, and the terms of any such transaction remain uncertain, based on the proposals received to date, it is not expected that any sale transaction will provide any recovery for the holders of the company’s equity interests."

Cineworld added: “As announced on September 7, 2022, during the restructuring process, Cineworld continues to operate its global business and cinemas as usual without interruption. Cineworld and its brands around the world - including Regal, Cinema City, Picture House and Planet - are continuing to welcome customers to cinemas as usual. The Group continues to honour the terms of all existing customer membership programmes, including Regal Unlimited and Regal Crown Club in the United States and Cineworld Unlimited in the UK.”

Cineworld operates 103 cinemas under the Cineworld brand across the UK and the Republic of Ireland and a further 26 under Picturehouse brand.