Cinema chain Everyman brings in advisers to steer landlord talks

·Business Reporter, Yahoo Finance UK
·2-min read
A person wearing a face covering walks past The Screen on the Green cinema in Islington, part of the Everyman chain, which was closed following the coronavirus (COVID-19) outbreak, London, Britain, July 3, 2020.   REUTERS/Simon Newman
It is the latest in a string of cinema chains to bring in experts to help shore up finances, following the likes of Cineworld, Odeon and Vue. Photo: REUTERS/Simon Newman

Cinema operator Everyman Media Group (EMAN.L) has appointed financial advisers to help steer it through talks with landlords as it continues to reel from the devastation caused by coronavirus.

The company has drafted in FTI Consulting to help it in talks during the coming months, Sky News first reported.

It is the latest in a string of cinema chains to bring in experts to help shore up finances, following the likes of Cineworld (CINE.L), Odeon (ODE.F) and Vue.

Everyman, which has a total of 35 sites and still plans to open eight more, raised £17.5m ($23m) from a share placing in April in an attempt to strengthen its balance sheet.

Earlier this month Everyman said: “All appropriate measures are in place to reduce the financial impact of the closure on the group, including the reduction of operating costs and the postponement of new sites, refurbishments and other capital expenditure projects, together with accessing government support schemes where available."

The leisure and hospitality industry has suffered this year as people have been told to stay home to protect lives and stop the spread of the coronavirus.

Recently, film studios have delayed blockbuster releases such as Marvel’s Black Widow, Disney’s Mulan and the latest movie in the James Bond franchise No Time To Die.

The 25th Bond film was initially due to be released in cinemas in April 2020 but was then pushed back until November. Beverly Hills-based MGM later postponed it until April next year.

READ MORE: No Time To Die 'not for sale' to Apple TV or Netflix, says MGM

Last month Cineworld, Britain’s biggest cinema chain, announced plans to temporarily close its doors in the UK and its Regal cinemas in the US, on the back of big-budget film delays. The move affected around 45,000 staff, including cleaners and security personnel.

The head of the UK Cinema Association at the time said he feared the Cineworld closure was "indicative of challenges faced by the entire UK cinema industry at the moment."

Meanwhile in October, Everyman chairman Paul Wise said in a letter to staff that the coronavirus pandemic had created a “temporary shortage of available work” and there was a need to “lay off 400 of our venue team members across the estate.”

“By making use of lay off, we are able to avoid considering further redundancies at this time and keep more people in employment,” the letter said.

Everyman declined Yahoo Finance UK’s requests for comment.

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