Cineworld says Manchester branches will be welcoming customers as usual as it files for administration

Cineworld has revealed it prepares to enter administration but for Manchester branches it will be business as usual.

The chain, which has branches in Ashton-under-Lyne, Bolton and Didsbury, is the world’s second-largest cinema chain wth 128 cinemas across the UK and Ireland.

It has confirmed it file for administration in the UK next month as part of a restructuring plan that is set to wipe out shareholders.

However, the business has stressed the move will not affect the British operations for the holding company, with cinemas continuing to remain open as usual.

Cineworld insists its cinemas will continue to operate and that its restructuring plan will “provide it with significant additional liquidity to fund its long-term strategy.”

Cineworld filed for Chapter 11 bankruptcy in the US last year after struggling with huge debts and dwindling audience numbers.

The exhibitor said today that administrators, once appointed, will transfer its assets to a wholly-owned subsidiary called Crown.

A newly incorporated company controlled by the group’s lenders will then become the sole owner of Crown, with Cineworld ceasing to have any interest in the parties.

In a statement Cineworld said: “Cineworld continues to operate its global business and cinemas as usual without interruption and this will not be affected by the entry of Cineworld Group plc into administration.

“The group and its brands around the world – including Regal, Cinema City, Picturehouse 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.”