THE UK’S biggest cinema firm is set to file for bankruptcy, sparking fears for the future of two new multi-million pound cinema complexes.
Cineworld has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process.
Businesses and opposition councillors say they are worried about the viability for Basildon’s £25 million East Square cinema complex and the £70 million Seaway plans in Southend.
Both cinemas will be managed by Empire Cinemas, but fears are growing that the cinema industry is struggling to recover from the Covid pandemic.
Joan Tiney, 72, owner of The Borough Hotel on Southend seafront said: “I think it raises serious questions about the Seaway plan but I’ve been saying it’s ridiculous for years.
“I think the development will fail and this issue with Cineworld raised concerns about the industry as a whole and the viability of the Seaway plan.”
READ MORE >>>
- Castle Point cut and clamped street lights to be replaced
- Westcliff High for Girls student celebrates 5 A* A-Levels
Kerry Smith, Independent councillor for Nethermayne and former deputy leader of Basildon Council said online streaming platforms, such as Netflix, means there’s less need for cinemas.
He said: “I think the Eastgate Square cinema will become Europe’s biggest pigeon coop. It may start well but become far too quiet, the town centre can’t sustain it.”
Basildon’s ten-screen complex includes eateries such as Nandos, Orlete Lounge and Kaspa’s dessert parlour.
Kevin Blake, Tory deputy leader of Basildon Council, insisted the scheme will be a success. He added: “I have no doubts it will thrive.”
Martin Terry, Independent deputy leader of Southend Council is confident the Southend cinema complex will not be impacted by the Cineworld troubles and said the town is crying out for a new cinema.
A Cineworld statement said: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.
“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel