The Wall Street Journal reported today that Cineworld is expected to file Chapter 11 bankruptcy in the United States and declare insolvency in the U.K.
Regal itself declared bankruptcy once before, in 2001. The company evolved with new investors
who also took over United Artists and Edwards Theaters, eventually merging all of them
Cineworld had the added burden of having recently acquired Regal in December 2017 for $3.2 billion.
It was a big bet on continued growth that could not anticipate the closure of theaters just over two years later.
Although Regal is #2 in grosses and number of screens, most urban areas have other exhibitors to pick up the slack in the unlikely event that Regal theaters close.
AMC is far more dominant in New York, Los Angeles, and Chicago, while Cinemark has a huge footprint in much of the south and west.
Chapter 11 usually leads to cost cutting and limited maintenance. That could mean reduction of hours at some locations, or closing on certain weekdays.
Regal Cinemas could see some immediate impact.