Cineworld is looking at ‘insolvency process’ in the UK   

Cineworld, one of the world’s largest cinema chains and owner of the multiscreen on Parnell Street in Dublin, is looking at a company voluntary arrangement, an insolvency process used in the UK to cut costs, as part of its talks with lenders to gain access to capital, the Financial Times has reported. 

The cinema chain is also considering slashing rents and permanently closing UK cinemas after lockdown restrictions and a lack of blockbuster films caused business to collapse. 

The company last month temporarily shut its US, UK, and Ireland operations, leaving 45,000 people unemployed for the foreseeable future.

Meanwhile, shares in the UK company Royal Mail soared 6.5% after it raised its full-year revenue outlook, as it benefited from a surge in online shopping during coronavirus lockdowns. 

The company’s updated scenario for the current fiscal year estimated revenue to be £380m (€425m) to £580m higher year-on-year, and that its main UK operation could break even if it hits the top end of that forecast.

Shares in Royal Mail, the UK’s state-owned postal monopoly until its privatisation in 2013, climbed to a near two-year high.

The company is in the midst of a long-running battle with unions over restructuring plans.

Royal Mail has announced plans to hire 33,000 extra workers ahead of the traditional Christmas parcels and cards boom, but said yesterday that tight new restrictions imposed across the country until at least the start of December left doubts over how the period would pan out for the business.

“While the Covid-19 pandemic continues to present challenges for both Royal Mail in the UK and GLS [international parcels business], the first-half performance has been above our initial expectations in many areas,” Keith Williams, interim executive chairman, said in a statement.

Royal Mail, balancing declining letter deliveries with surging parcels, said costs related to Covid-19, the increased parcel volumes and restructuring led to an adjusted operating loss of £129m. 

• Reuters and Irish Examiner staff