- Multiple media outlets are reporting that Cineworld (Regal Cinemas) is preparing to file for bankruptcy. Earlier in the week, Cineworld put out a release indicating that recent admissions have been below current expectations "due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and Cineworld's liquidity position in the near term." (We recently discussed the 3Q22 release schedule being soft before picking up in 4Q22 and 2023.)
- Regal operates 505 theaters consisting of 6,787 screens in the US. The bankruptcy would allow Cineworld to exit some of these leases or sell them to Cinemark or AMC. Cinemark has more financial flexibility with its current balance sheet. AMC has Adam Aron and his army of retail investors. Netflix and Amazon are other potential bidders for the theaters.
- Following in the footsteps of our work on the return to theaters, the WSJ wrote a piece titled "Movie Theaters Plot Revival as Americans Show Up for Blockbusters". The article quotes Warner Bros. President of Domestic Distribution Jeff Goldstein saying, “There’s no question that we’re coming back—in relevance, and in actual behavior.” As well as carrying the quote from Paramount Global CEO Bob Bakish,“We held off because we knew these phenomenal stories would bring audiences back to theaters." That proved to be the right call.
