The Vue International Cinema chain cut its valuation by around half to around £650m ($785.6m).
The temperature reports that the company is being restructured under a deal that shielded it from a 130 million euro lawsuit in Germany and allowed fresh money to flow into operations. This follows last month’s announcement that Vue’s lenders will take control of the business, replacing former majority owners Alberta Investment Management Corporation and Omers (the two Canadian pension funds).
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Vue had a banner year in 2019, when it was valued at around £2billion, but the chain suffered huge losses in early 2020 as a result of Britain’s Covid lockdown, and later that year -there when studios hesitated to release big budget films like James Bond no time to die in cinemas.
by Christophe Nolan Principlereleased in August 2020, struggled to recoup its $205 million budget, although it recently enjoyed returns of $365.5 million.
This year promises to be brighter, driven by Tom Cruise’s return to fighter piloting in Top Gun: Maverick enjoying a global box office windfall of $1.28 billion so far, although cinema ticket sales are otherwise at 65% of pre-Covid figures – impacted by factors such as Disney’s decision to release titles such as Pixar turn red directly on the Disney+ streaming platform.
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