Cineworld plots blockbuster sale of British cinema operations
One of Britain’s biggest cinema chains is in secret talks about a sale as part of a strategic review that could lead to a wholesale restructuring of its business.
Sky News has learnt that Cineworld, whose parent company went through a series of insolvency processes last year, is working with advisers on a potential disposal of its UK operations.
Cineworld, which trades from more than 100 sites in Britain and employs thousands of people, has begun contacting prospective bidders in recent days.
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AlixPartners, the restructuring adviser which handled the administration of Cineworld’s London-listed holding company last year, has been drafted in to work on the process.
City sources said this weekend that the sale process was expected to run for several weeks.
They added, however, that the cinema giant was also expected to explore the option of a company voluntary arrangement (CVA) – a further restructuring process which could put an unspecified number of its UK cinemas at risk of closure.
A spokesman for Cineworld at its public relations adviser, Hill & Knowlton, said he was refusing to provide information about many sites the company operated in the UK or how big its workforce was.
In a statement issued to Sky News, he said: “Like many businesses, we are continually reviewing our UK operations.”
Cineworld grew under the leadership of the Greidinger family into a global giant of the industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years earlier.
File pic: Geoffrey Swaine/Shutterstock
Its multibillion-dollar debt mountain led it into crisis, though, and forced the company into Chapter 11 bankruptcy protection in 2022.
It delisted from the London Stock Exchange last August, having seen its share price collapse amid fears for its survival.
Under the deal which secured its survival, several billions of dollars of debt were exchanged for shares, with a significant sum of new money injected into the company by a group of hedge funds and other investors.
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Cineworld also operates in central and Eastern Europe, Israel and the US.
The sale process only relates to its UK business, according to insiders.
It was unclear whether Picturehouse, which Cineworld also owns, is also part of the auction.
A number of financial investors are expected to examine offers for Cineworld’s UK business, while rival Vue is also likely to assess whether a bid would be viable.
Last year, Sky News revealed that Vue had assembled backing for a takeover of Cineworld, but was frozen out of a process that was eventually abandoned.
Vue itself has undergone a number of financial restructurings but its balance sheet is now on a sustainable footing after dealing with the twin shocks of the pandemic and the Hollywood writers’ strike.
Pic: PA
Since it emerged from bankruptcy protection, Cineworld has appointed a new leadership team, installing Eduardo Acuna, who ran Mexican cinema chain Cinepolis’s operations in the Americas, as its chief executive.
Eric Foss, a former Pepsi executive, was parachuted in as Cineworld’s chairman.
One property industry source said that any attempt by Cineworld to pursue a CVA or other restructuring which compromised landlords was likely to be met with fierce resistance.
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Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.
It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.
He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.
Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.
“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.
“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Ms Siddiq insists she has “done nothing wrong”.
Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.
Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.
Tory leader Kemi Badenoch has called on Sir Keir to sack the minister
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As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.
She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.
On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.
“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”
Police in Aberdeen have widened the search area for two sisters who disappeared four days ago in the city.
Eliza and Henrietta Huszti, both 32, were last seen on CCTV on Market Street after leaving their home on Tuesday at around 2.12am.
The sisters – who are part of a set of triplets and originally from Hungary – crossed the Victoria Bridge to the Torry area and turned right on to a footpath next to the River Dee.
Eliza and Henrietta Huszti were last seen on CCTV in Market Street. Pic: Police Scotland/PA
They headed in the direction of Aberdeen Boat Club but officers said there is no evidence to suggest the missing women left the immediate area.
Specialist search teams, police dogs and a marine unit have been trying to trace the pair.
The sisters crossed Victoria Bridge before walking along a footpath next to the River Dee
The pair were heading in the direction of Aberdeen Boat Club on the south side of the River Dee
Further searches are being carried out towards the Port of Aberdeen’s South Harbour and Duthie Park.
Police Scotland said it is liaising with authorities in Hungary to support the relatives of the two sisters.
Chief Inspector Darren Bruce said: “Eliza and Henrietta’s family are understandably extremely worried about them and we are working tirelessly to find them.
“We are seriously concerned about them and have significant resources dedicated to the inquiry.”
The sisters, from Aberdeen city centre, are described as slim with long brown hair.
Henrietta Huszti. Pic: Police Scotland
Eliza Huszti. Pic: Police Scotland
Officers have requested businesses in and around the South Esplanade and Menzies Road area to review their CCTV footage for the early morning of Tuesday 7 January.
Police added they are keen to hear from anyone with dashcam footage from that time.
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