Uncertainty Grows Over Multiplex in Filmworks Development
Both council and operator tight-lipped over prospects for cinema
The new cinema has been 'coming soon' for a long time
The possibility of a new cinema opening in the centre of Ealing looks less certain this week following the announcement that the Cineworld group has filed for bankruptcy in the US.
The company is the owner of the Picturehouse cinema chain which was due to open an eight-screen cinema complex in the Filmworks development before the end of the year.
We contacted both Picturehouse and Ealing Council to ask if they could confirm if the opening would proceed as planned but neither have responded.
Another missed deadline for opening would be the latest in a series of disappointments for residents of Ealing who, up until this year had not had a cinema in the area since 2008. In the meantime, The Ealing Project has launched a cinema nearby at the former Karma Club premises. Also, ActOne has launched in the old Acton Library and has just announced it has secured funding for a second screen.
In 2016, as ground was being broken on the Filmworks project, the then leader of Ealing Council, Julian Bell said, “This is a very happy day for me and for the people of Ealing. The council promised that we would bring a cinema back to our town centre and despite many setbacks, I am delighted that work is finally starting on making this happen.”
Following that, it was announced the cinema would be operating in Spring of 2019. This date was pushed back several times, first to 2020, and then to an expected opening in summer 2021 with the Covid-19 pandemic contributing to the delays.
The latest date for opening had been given by project developer St George’s as being at the end of this year with sources on site suggesting this would be in December. Previously the council had said that the cinema was going to open this Spring.
Cineworld has filed for Chapter 11 which gives it some measure of protection from its creditors and should allow its business to continue operating for the time-being. Industry sources have said that the Picturehouse group, which has 26 venues across the UK, is not struggling too badly in financial terms and that it is the debt that has been taken on by the parent company which is causing the problems. It is possible that the chain could be sold as a going concern although a potential buyer may be put off by expansion plans which it feels may result in higher losses.
The cinema would be at the heart of the new development
A visualisation of what the Ealing cinema would look like. Picture: St. George's
The company has previously been taken to court by the owners of the Trocadero Centre, which is where its flagship Picturehouse Central cinema is based, for non-payment of £1.4million in rent.
Financial problems at a cinema chain may make some film distributors unwilling to release titles. Many did not get paid without much delay for films provided during the pandemic and have asked for payment up front in some cases. Distributors have now reportedly tightened up on invoices giving venues less leeway to make late payments of the share of revenue from a film.
There is also an increasing question mark in the industry about the viability of multiplexes. Fewer films are being released since the Covid-19 pandemic with many not being shown in cinemas but released on screening services instead. This month saw the launch of the most expensive TV series ever, The Rings of Power, which is a continuation of the Lord of the Rings film series. Smaller independent venues have enough titles to put on a regularly changing programmes but cinemas with lots of screens are struggling to find enough titles and are often forced to continue showing films for a long time after their initial release date limiting likely ticket sales.
The Filmworks development contains over 200 art-deco inspired flats which the developer is currently trying to sell. The theme harks back to the original Empire Cinema in Ealing which was built in 1934 and blocks within the development were named after film stars. Although some units have been available at a discount to market basis for buyers who meet certain criteria most have been advertised in the range of £994,950 - £1,149,950. The company's website still states that the development will include a Picturehouse cinema.
Chester Council is in a similar situation to Ealing with Picturehouse due to open a six-screen cinema in the Northgate development in the city centre. It has said that it is monitoring the situation and that fitting out of the cinema is continuing for now.
Cineworld, which is the second biggest cinema chain in the world, was badly affected by the pandemic and falling audiences and had made an expensive acquisition of Regal theatres in the US which added to its debt pile.
The company said in a statement accompanying the announcement that it “will seek to implement a deleveraging transaction that will significantly reduce the group’s debt, strengthen its balance sheet and provide the financial strength and flexibility to accelerate, and capitalise on, Cineworld’s strategy in the cinema industry”.
It hopes to emerge from bankruptcy proceedings in the first quarter of next year as it has nearly $2 billion in funds from existing operators to keep operating.
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September 8, 2022