Many movie enthusiasts in Tennessee visit Regal Cinemas theaters to enjoy the latest films. Regal has its headquarters in Knoxville. Moviegoers may be surprised to learn that the parent company of the cinema mogul plans to file for bankruptcy.
In recent years, many Regal theaters were temporarily shut down. In fact, as many as 40,000 workers were laid off from their jobs at cinemas throughout the country. Theater owners hoped that when they opened again, there would be a surge of business. However, that did not happen. Ticket sales remained low.
Streaming options create serious competition for theaters
Many people prefer to entertain at home nowadays. Online streaming options enable subscribers to watch current films without having to leave home. This modern convenience has created stiff competition for movie theaters. Company executives believe this may be one issue of several that sparked a serious financial crisis for Cineworld, the parent company of Regal theaters.
Cineworld is reportedly more than $4 billion in debt. By filing for bankruptcy, it can restructure its financial platform. The company employs approximately 28, 000 workers. A spokesman stated that the company remains hopeful that recovery is underway, although it is taking more time and requiring debt relief efforts to restore financial solvency. For those who may be experiencing similar financial problems in a Tennessee business, it may be helpful to request a consultation with a bankruptcy law attorney, who can carefully review a case and recommend a program that best fits a particular need.