The Cineworld Group is reportedly preparing to file for bankruptcy after failing to significantly pull audiences back in following the pandemic.

Cineworld is expected to file a chapter 11 petition in the US and is considering insolvency proceedings in the UK, according to the WSJ. It is the second largest cinema chain in the world, and operates over 750 theatres in 10 countries; 128 of them are in the UK and Ireland.

The business has run up debt of more than £4 billion (€4.7bn) after losses snowballed while cinemas were shuttered during lockdowns. It has reportedly hired lawyers from Kirkland & Ellis and consultants from restructuring experts AlixPartners to advise on its finances.

Cineworld released a statement earlier this week regarding finances before news of a potential bankruptcy filing emerged. The 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.”

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Tags: cinema, cineworld, elvis, Jurassic World, The Rock, Top Gun