Is Regal Cinemas Headed for Bankruptcy?

Bankruptcy doesn’t always indicate that a company is going out of business. It can, however, signify that a company has accrued a substantial amount of debt and is seeking relief.

Regal Cinemas has long served as a leading movie theater chain for decades. But it appears it has run into financial trouble and may be considering using bankruptcy as a solution to dig itself out of debt.

On August 22, 2022, CNN reported that Regal Cinemas’ owner (Cineworld) had confirmed that the company may turn to the bankruptcy court for some help but assured that it would continue to conduct “business as usual (1).”

Regal Cinemas is considering filing for Chapter 11 bankruptcy.

According to CNN, Cineworld confirmed in a statement that a “voluntary Chapter 11 bankruptcy filing in the United States” is something the company is considering to “reduce its debt burden.” Even if Cineworld did decide to go through with the bankruptcy process, it says it will “maintain its operations” which would ultimately avoid any impact on its employees.

Although a Chapter 11 bankruptcy filing is what Cineworld may need in order to stay afloat (and in business), the news didn’t translate well for the company’s stock. CNN shared that Cineworld’s stock had plummeted nearly 80% after the company sought legal advice from bankruptcy lawyers.

Cineworld is blaming low admission levels on its ability to recover from all the hardships it has faced, many of which were brought on by the COVID-19 pandemic. CNN says Cineworld suffered “a $2.7 billion loss in 2020 and $566 million loss in 2021.”

Chapter 11 bankruptcy can be useful to businesses that want to stay open and operating.

If your business has taken on more debt than it is able to repay though you aren’t ready to shut its doors, Chapter 11 bankruptcy may be something to consider. The Springville, AL bankruptcy attorneys at Hill, Gossett, Kemp & Hufford, P.C. would be happy to discuss with you the pros and cons of bankruptcy and determine if your business meets all of the qualifications to file.

Should you decide to go through with filing, you can rest assured the skilled Springville, AL bankruptcy lawyers at Hill, Gossett, Kemp & Hufford, P.C. will walk you through each step of the process and assist you in making informed decisions.

Have questions about this article or a legal concern? Call 800-672-3103.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

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2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

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Leeds, AL 35094

Phone: (205) 699-5500

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6441 U.S. Highway 11