Regal Cinemas owner Cineworld prepares for bankruptcy filing

Cineworld Group PLC, the owner of Regal Cinemas, is preparing to file for bankruptcy, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The British cinema chain operator is expected to file a chapter 11 petition in the United States and is also considering insolvency proceedings in the United Kingdom, the report said.

The news comes just days after Regal Cinemas’ owner warned that a lack of blockbusters would hit its liquidity in the near term.

Shares of London-listed Cineworld, the world’s second-largest cinema chain operator, slumped more than 81% to a record low of 1.8 pence.