Ealing Multiplex in Balance as Cineworld Bankruptcy Looms
Collapse of cinema chain may accelerate opening of Filmworks venue
The interior of one of the screening rooms at Filmworks. Picture: Picturehouse Ealing
April 13, 2023
The prolonged saga of the 8-screen cinema in the centre of Ealing may be coming to a culmination as news emerges of the financial plight of Cineworld.
The global cinema chain owns the Picturehouse group which operates 24 venues in the UK and was set to open the multiplex in the Filmworks development.
At the end of last month, posts on the Picturehouse Ealing social media accounts announced, "Good news! Our team are busy working behind the scenes to open the doors of Ealing Picturehouse later this year, and we can't wait to welcome you all."
The announcement of the reopening of the 900 seat venue was retweeted by Ealing Council leader Peter Mason. However, it is thought unlikely that there can be any certainty about a reopening date until the ownership situation is resolved.
This week Cineworld made a disclosure to a Texas bankruptcy court in which it admitted it may struggle to exit Chapter 11 bankruptcy protection. This give the business a measure of protection against its creditors, but it has to demonstrate the underlying operation is viable.
In the statement the company admitted it was having difficulties due to the highly capital-intensive nature of the business and the huge legal fees relating to its situation.
Although it says it hopes to exit Chapter 11 in the first half of this year, it is warning its cash flow may not be sufficient to allow it to do so.
It is believed that the financial problems of the business are primarily a result of over-ambitious expansion in North America and that the UK operations including the Picturehouse chain are in relatively good financial health. In one scenario, Cineworld’s financial difficulties could accelerate the process of the new Ealing cinema opening.
One local financial professional who has been following the issue said, “Without sight of the contracts between the developer and Picturehouse, we can only speculate but, should Cineworld collapse, the opening of the cinema may be brought forward. St George must be desperate to get the cinema open and would probably be willing to operate it at a loss. The Picturehouse group will probably be sold by the liquidators of Cineworld and the new buyer may either choose to open up the Ealing cinema or abandoned whatever priority rights they have on the space.”
The new cinema has been 'coming soon' for a long time
There has been reported interest in the Picturehouse chain from potential buyers, including Lyn Goleby, the original founder of Picturehouse, who the industry press say has been in discussions with Vue about working together on an acquisition. This would see Vue take on Cineworld’s UK assets with the boutique Picturehouse chain being managed separately by Ms Goleby.
She founded Picturehouse in Oxford 35 years ago and was bought out of the business for £47 million in 2012. She is behind the opening of The Chiswick Cinema, a site that originally Picturehouse had intended to takeover.
When asked about her interest in Picturehouse by the press she has declined to comment other than to say she hopes Cineworld can return ‘fighting fit’.
Curzon cinemas is also reported to be interested although it is believed that an 8-screen cinema such as the one in Ealing would not be a good fit for its portfolio and the company would be unlikely to want to take it on.
Cineworld is currently auctioning off its assets and has warned that the money raised is unlikely to be sufficient to return any value to its shareholders with creditors and the tax authorities having priority.
Curzon CEO Philip Knatchbull has told Screen magazine that “would be a great addition to Curzon”.
He added, “Anyone of any sensible nature who believes in cinema can see that the advantage of having Picturehouse Cinemas as part of their group is that, outside Cineworld, [Picturehouse] will be able to go back to being more independent and more entrepreneurial in the way they approach their marketing. I am sure there are many other people who think Picturehouse will be a great capture.”
We have approached Lyn Goleby and Curzon Cinemas for comment.
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