Britain's Cineworld Group is preparing to file for bankruptcy as it struggles to rebuild attendance from pandemic lows, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Cineworld, which also operates Regal Cinemas in the United States, has engaged lawyers from Kirkland & Ellis LLP and consultants from AlixPartners to advise on the bankruptcy process, the report added.
The news comes days after the world's second-largest cinema chain warned that a lack of big-budget movies was hitting admissions and would likely persist until November, potentially complicating efforts to cut debt.
The London-listed company is expected to file a chapter 11 petition in the United States and is considering filing an insolvency proceeding in the UK, the report said.
Cineworld and Kirkland & Ellis LLP did not immediately respond to Reuters requests for comments.
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