Cineworld has today confirmed plans to temporarily close 127 sites across the UK, affecting up to 45,000 employees.
The cinema chain will make closures after big studios started to delay their major film releases to wait for better audiences.
Cineworld said up to 45,000 employees will be affected by theatre closures in the UK and the US – the cinema giant’s two biggest markets. It is thought up to 5,500 jobs are at risk in the UK.
More than 600 sites will be closed across the two countries from Thursday after the industry was rocked by plans by James Bond studios MGM and Universal to delay the release of the franchise’s latest film.
Cineworld said it would close 127 Cineworld and Picturehouse sites in the UK sending shares down by as much as 57% as markets opened in London.
Boris Johnson acknowledged there would be ‘tough times ahead’ in the jobs market following the Cineworld announcement but encouraged people to go to the movies.
The Prime Minister told reporters in central London: ‘Obviously we hope to reduce, to keep the numbers of people who lose their jobs down as much as we can, but clearly there are going to be tough times ahead.
‘That’s why we’ve already invested £190 billion in supporting jobs, livelihoods around the country.
‘Supporting local cinemas – I think we’ve already put £30 million in, but what I would say to people is that local cinemas do now have ways of making their shows go on in a Covid-secure way and I’d encourage people to go out to the cinema, enjoy themselves and support those businesses.’
Cineworld today confirmed it was considering the temporary closure of its UK cinemas, as well as its US cinemas, but that ‘a final decision has not yet been reached’
Chief executive Mooky Greidinger said: ‘This is not a decision we made lightly, and we did everything in our power to support safe and sustainable reopenings in all of our markets.’
On Friday, the release of Bond film No Time To Die was delayed for the second time because of the Covid-19 pandemic.
The film was meant to hit cinemas in November, but fans will now have to wait until April 2 next year before seeing Daniel Craig’s final outing in the role.
The movie joins other potential hits such as Black Widow and Wonder Woman: 1984, which have been delayed by the pandemic.
But staff took to Twitter overnight to slam the company for not telling employees about the plans before they were reported.
One Twitter user said: ‘This is going out to all my fellow Cineworld colleagues up and down the country, wishing you the best in these early hours with the news of the closures.
‘Been with Cineworld for 12 years, to find out I’ve not got a job via Twitter; once again; is damn appalling.’
Another, whose husband works for Cineworld, said: ‘Just checking Twitter before bed … oh looks like we just found out via Twitter that my husbands place of work is closing, thanks for telling your employees Cineworld, finding out on Twitter as usual.
‘I guess we’ll wait to hear from them at some point in the future.’
A group on Twitter named the Cineworld Action Group also took to the social media site to comment on the reports.
A Cineworld staff member, who did not want to be named, said they felt ‘betrayed’.
The employee said: ‘None of us have been told a single thing yet, so me and my work colleagues are sort of in panic mode right now, wondering what’s going to happen to our jobs, especially this close to Christmas.’
Alongside the closure plans, bosses of Cineworld Group PLC are reportedly preparing to write to Prime Minister Boris Johnson and culture minister Oliver Dowden to say the industry has become ‘unviable’.
Cineworld said today: ‘As major US markets, mainly New York, remained closed and without guidance on reopening timing, studios have been reluctant to release their pipeline of new films.
‘In turn, without these new releases, Cineworld cannot provide customers in both the US and the UK – the company’s primary markets – with the breadth of strong commercial films necessary for them to consider coming back to theatres against the backdrop of Covid-19.’
Alongside the closure plans, bosses of Cineworld Group PLC are reportedly preparing to write to Prime Minister Boris Johnson and culture minister Oliver Dowden to say the industry has become ‘unviable’
Last week, the release of the highly-anticipated Fast and Furious sequel F9 was also delayed again, while Disney announced last month that its live-action version of Mulan instead debut on its streaming service Disney Plus instead of a theatrical release.
The new Fast and Furious meanwhile is set for release on May 28, 2021, it was announced by Universal yesterday.
Work and Pensions Secretary Therese Coffey said firms had received ‘a lot of support’ after the news broke on Monday.
Asked if the Government will help the chain, she told Sky News: ‘One of the things Cineworld has cited is that cinemagoers want to be able to see new films coming through, as opposed to just seeing films of the past, and that’s something which the whole industry can work together to deploy.
‘Cineworld will have been supported throughout the year through the furlough scheme through other ways the Government has been supporting businesses.
‘Conscious that aspects of the main furlough scheme are coming to an end, but there is a successor scheme there.’
Mr Greidinger said Cineworld will wait until ‘the appropriate time’ to talk about reopening.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ‘The new jobs support scheme, which will subsidise wages of part-time workers, will provide no lifeline for the 5,500 Cineworld UK employees who will lose their jobs this week and many others across the industry are facing a bleak winter on jobseekers benefit, while they begin the difficult search for new positions in the run-up to Christmas.’
Labour shadow culture secretary Jo Stevens said: ‘This is devastating news for Cineworld workers and cinema goers, and will have a knock-on impact on towns and city centres.
The latest film in the James Bond series ‘No Time To Die’, which had been scheduled to debut in theatres on November 11, has now been postponed until April 2021
‘The cinema industry was viable before the crisis and will be afterwards, when the film industry recovers.
‘The failure of ministers to recognise the value of shut-down businesses, which now includes many cinemas, means they are consigning thousands of workers to the scrap heap.’
Vue chief executive Tim Richards told BBC Radio 4’s Today programme that his company has taken a hit by delays from the studios.
‘Our problem right now is we have no movies. This was a big blow for us.
‘We’re likely going to make it through, I’m concerned about the independents and the small regional operators right now that are going to really struggle and when they close they may not reopen,’ he said.
‘We’ve tried to retain all of our jobs for the 5,500 employees we have in the UK and that’s still our goal.
‘We’re going to try and find a way through this. This was an industry that was not broken.’
British Film Institute (BFI) chief executive Ben Roberts raised similar concerns about the prospects of the industry as a whole, but emphasised ‘great reasons to visit your local cinema – as distributors continue to offer new independent films to audiences’.
His call to get customers back into seats was echoed by the Government, which promised a package of more than £1.5billion to help the arts and culture industries recover from the pandemic in July.
A spokesman for the Department for Digital, Culture, Media and Sport said: ‘The Government is supporting cinemas through the VAT cut on tickets and concessions, business rates holiday and bounce-back loans.
‘Independent cinemas are also eligible for a share of £30 million from our unprecedented £1.5 billion culture recovery fund, and funding has started to be allocated already.
‘Cinemas up and down the country are open for business and Covid secure.
‘We urge the British public to support their local cinema and save jobs by visiting and enjoying a film in accordance with the guidance.’
A statement on Twitter read: ‘MGM, Universal and Bond producers, Michael G. Wilson and Barbara Broccoli, today announced the release of NO TIME TO DIE, the 25th film in the James Bond series, will be delayed until 2 April 2021 in order to be seen by a worldwide theatrical audience.
‘We understand the delay will be disappointing to our fans but we now look forward to sharing NO TIME TO DIE next year.’
Reports of Cineworld closure plans comes amid a bloodbath of jobs on the high street, with 193,731 job losses now announced by major British employers since the start of the lockdown in March.
Last week, TSB has said it will cut around 900 jobs as part of plans to close 164 of its high street bank branches.
The Edinburgh-based bank said it expects most of the redundancies to be voluntary but did not rule out forcing staff out.
Major high street chains including Boots, WH Smith and Marks and Spencer had already announced job cuts.
Lunch chain Pret a Manger announced 2,800 job cuts earlier this year, while coffee giant Costa announced plans to cut 1,650 jobs.