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Cinema chain Everyman hires advisers to screen landlord talks

Written by on 16/11/2020

The Everyman cinema chain has become the latest industry player to bring in financial advisers as it assesses the impact of the coronavirus shutdown on its finances.

Sky News understands that Everyman Media Group, which has 35 sites, has appointed FTI Consulting to assist it in talks with landlords during the coming months.

It joins a list of major cinema operators – including Cineworld, Vue and Odeon – to draft in corporate finance experts to help weather the COVID-`19 crisis.

Everyman, which is publicly listed in London, has reduced its pipeline of venues since the start of the pandemic, although it still plans to open eight new cinemas in due course.

The cinema industry has been plunged into chaos by the coronavirus, with film studios delaying blockbuster releases and in some cases deciding to release them on streaming platforms instead.

Vue recently raised additional debt funding, while Odeon’s parent, AMC, has said it is trying to raise fresh capital.

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Vue: Studios too focused on COVID-19 in US

Everyman raised £17.5m from a share placing in April in an effort to strengthen its balance sheet.

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It said earlier this month: “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.

Social distancing is likely to mean depressed audience figures and revenues, even with a substantial reopening of sites, meaning a vaccine is essential to restoring normality to cinema chains’ operations.

Everyman declined to comment on Monday on FTI’s appointment.

 Sky News

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