Many Tennessee business owners have been struggling to stay afloat financially in recent years. Economic stress has negatively affected many companies, regardless of their size. In fact, one of the largest cinema chains that operates in numerous countries recently announced that its U.S. theaters are filing for bankruptcy.
Globally, the company employs approximately 28,000 people. While it has been trying to get things back on track despite being $5 billion in debt, a spokesperson said that U.S. theaters will remain open for business while the bankruptcy petition is processed. So far, this year, box office revenue is more than 30% less than it was in 2019.
WSJ publishes bankruptcy info and shares begin to plummet
Shares in the cinema company took a nosedive recently, not long after The Wall Street Journal published information regarding the company’s plans to seek debt relief. Shares plummeted 60% within weeks of the news story. Another problematic issue that took a toll on the company’s finances is that theaters nowadays have encountered stiff competition with online movie streaming services.
Filing under Chapter 11 will enable theaters to stay open
There are several types of bankruptcy, each with its own set of eligibility requirements. Tennessee business owners in need of debt relief will want to explore all available options to determine which program best fits a specific set of needs and financial goals. In the cinema company’s case, owners have chosen to file for Chapter 11 bankruptcy, which enables doors to stay open for business while a restructured payment plan is negotiated with creditors.