Cineworld shares plummet more than 60% on bankruptcy reports

LONDON — Shares of British cinema chain Cineworld Group plunged Friday on reports that it is preparing to file for bankruptcy after failing to entice viewers back to movie theatres following a pandemic lull.

The stock was down around 63% in mid-afternoon trade in London, up just slightly from earlier Friday, when it hit a record low of 1.8 pence per share.

It follows reports first cited in The Wall Street Journal that the company, which owns Regal Cinemas, had engaged a team of lawyers and consultants to advise on the bankruptcy process, according to people familiar with the matter.

The company is expected to file a chapter 11 petition in the U.S. and is considering filing an insolvency proceeding in the U.K., they said.

Cineworld did not immediately respond to CNBC’s request for comment.

R&I – FS