The second-largest theater chain in the world is closing theaters.

According to Deadline, Cineworld, the parent company of Regal Cinemas, is shutting theaters as part of an ongoing Chapter 11 bankruptcy petition.

Out of a total of 542 theaters nationwide, 12 will be closed as the firm struggles financially as a result of Covid-19 shutdown. 

The decision is supported by predictions that the theater sector won't achieve pre-pandemic revenue levels until at least 2025.

Many Regal Cinemas sites, like the Anaheim 14 in Anaheim, California, were dilapidated. Others just became unaffordable as rentals increased because to behind rent payments from the epidemic shutdown.

Payments to studios for their films as well as to vendors, such as food vendors, game machines, and personnel wages, are all included in the theater fees for Cineworld and its rivals. 

The Chapter 11 agreement requires that these obligations be paid off first, and Cineworld has been given $785 million to make these monthly payments.

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