According to Deadline, Cineworld, the parent company of Regal Cinemas, is closing theatres as part of an ongoing Chapter 11 bankruptcy petition.
Out of a total of 542 theatres nationwide, 12 will be closed as the company struggles financially as a result of Covid-19 shutdown.
Many Regal Cinemas locations, like the Anaheim 14 in Anaheim, California, were dilapidated. Others just became unaffordable as leases increased due to back rent payments from the epidemic closures.
The Chapter 11 agreement requires that these obligations be paid off first, and Cineworld has been given $785 million to make these monthly payments.
Cineworld waited until the pandemic limitations were lifted because all chains were struggling, making the procedure easier today than in 2020.
A significant factor in both theatre attendance and Regal Cinemas' problems has been the online display of recent films.
New releases were broadcast on streaming services during the pandemic, which helped HBO Max and Disney+ gain subscribers. Numerous viewers
In a market still recovering from the pandemic, Cineworld's closures are noteworthy as it is the second-largest theatre chain in the world, after AMC.