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LONDON, October 5 (Reuters) – Cineworld’s chief executive says he has no choice but to shut down sites in Britain and America because cinema chains are spending too much money to keep them open.
“We’ve reached a stage where we have no other choice, it’s a very, very difficult decision for us, especially considering the actions we have to take with employees,” CEO Mooky Greidinger told Sky News Monday.
“From a liquidity standpoint, we put out a lot more when we open than when we close.”
The world’s second-largest cinema chain said studios’ reluctance to continue releasing major blockbusters like the new James Bond film had left them with no choice but to close all 536 Regal theaters in the US and 127 Cineworld and Picturehouse cinemas in the UK. starting October 8.
Greidinger said the tough decision was designed to secure the company’s long-term future.
“Our responsibility as management is to see how best the company can do it,” he said.
“We will get the liquidity we need, we have full support from the banks we work with, lots of funds. But we need to be careful and act responsibly.
“We are strengthening, with this step, the company’s position.”
Reporting by Kate Holton, editing by Sarah Young
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