The toll of Covid and sluggish sales have led to Vue significantly re-evaluating its commercial worth: more here.
The international Vue cinema chain has taken the step of downsizing its market value, restructuring itself accordingly in line with the post-Covid cinema landscape. Rewind back to 2019 and the company was operating with an estimated market value of $2bn. However, 2020 would see the global pandemic wipe out a significant chunk of that value.
Whilst cinemas in most markets around the world are once again open, global ticket sales are only around 65% of what they were pre-pandemic, not to mention the fact that some studios such as Disney are now sending films that would traditionally have been cinema releases onto streaming platforms.
It’s a turbulent time for cinema chains in general, with the late summer release schedule looking thin on the ground for the type of fare that multiplexes specialise in, plus it hasn’t been uncommon of late to find cinemas with a dozen screens only showing four or five films at a time.
As the industry continues to realign itself in the wake of the global pandemic, it’s possible that we’ll see more of these re-evaluations although, in the case of Vue, the move seems to be strategic as its more modest valuation allows for it to be restructured by the company’s creditors, who are now in control of day-to-day operations. We’ll let you know should any more details transpire with this one.
Image: BigStock
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