Colchester Council considering alternatives for Cineworld

The authority is "closely monitoring developments" of the cinema giant's current situation.

Cineworld Group PLC, the parent company of Cineworld Cinemas was placed into administration on July 31 last year “by the order of the court”, according to the business' website.

A multiplex containing a new 12-screen Cineworld was announced for the multimillion Northern Gateway Leisure Park, just off the A12, in 2021.

Site - Northern Gateway Leisure Park (Image: Newsquest) In July, the cinema operator announced a restructuring plan that will involve the closure of numerous sites in the UK, throwing the potential for the city's first site into doubt. 

The plan was approved by a High Court judge yesterday.

Cine-UK Ltd, Cineworld Cinemas Ltd, Cineworld Cinema Properties Ltd and Cineworld Estates Ltd, which are parts of the UK arm of the world’s second-largest cinema chain, were at risk of entering administration if the restructuring was not approved, the court heard.

The approval means that £16 million of new equity funding from the companies’ indirect parent firm will be released to fund their immediate financial needs, with further funds of up to £35 million also to be made available.

It will also see the four companies renegotiate the leases of some of their more than 100 sites, six of which are now set to close due to being “commercially unviable”.

Signage - Cineworld While the Cineworld earmarked for Colchester was not part of the six intended closure its fate remains unclear.

Colchester Council said while no "specific updates" have been given regarding the Colchester site, it "remains committed to the success of the Northern Gateway project".

A spokesman added: “Given the current situation, we are closely monitoring developments and exploring other options, including potential new cinema operators, should Cineworld decide not to proceed with the project.”

Councillor Mark Cory, Colchester Council deputy leader and portfolio holder for resources added: “Cineworld’s financial situation is, unfortunately, outside of the council’s control.

Positive - Councillor Mark Cory (Image: N/A) “We are determined to maintain this positive momentum. If needed, we are prepared to engage with alternative cinema operators and explore other options that will complement and enhance this important project.

“While we understand that residents may feel frustrated by the uncertainty, we want to reassure them that the council remains fully committed to delivering a vibrant and successful Northern Gateway.

“We will continue to work collaboratively with our partners and across party lines, and as soon as more concrete information becomes available, we will share updates with the public.”