Cineworld shares plummet as it closes cinemas following delay to new James Bond movie due to coronavirus

The shares fell 21p to 18.4p today as investors feared for the company's future amid its huge, $8 billion, debt pile.

Cineworld explained that Hollywood studios' reluctance to launch films while New York theatres were closed meant it could not continue operating for now. The decision will hit 45,000 staff.

"This is not a decision we made lightly, and we did everything in our power to support safe and sustainable reopenings in all of our markets... Cineworld will continue to monitor the situation closely and will communicate any future plans to resume operations in these markets at the appropriate time."

This would be when studios feel confident enough to bring their pipeline of major releases back to the big screen, which will only happen when they can be reassured that theatres will remain open, he said.

The group repeated its recent statement that it was considering its options about how to raise cash to boost its liquidity in the crisis.

Analysts at Jefferies stockbrokers today predicted the group might now try to launch a bond issue to raise cash in order to avoid diluting the shares of the management team which own 20% of the company.

They said the group has around $150 million of cash at the end of August, plus a $110 million revolving credit facility, set against a $50 million to $60 million cash burn when the group was shut during lockdown.

Hargreaves Lansdown analyst Susannah Streeter said: "The spread of Covid-19 around the world has been a horror movie for the industry and the fresh wave of infections is the latest installment in what's been a devastating story for cinema chains."

She pointed out that, for the UK employees affected, the cuts will come just as the furlough scheme ends. The jobs support scheme replacing it will not apply to them as it only helps part time workers. "UK employees who will lose their jobs this week, and many others across the industry, are facing a bleak winter on jobseekers's benefit while they begin the difficult search for new positions in the run up to Christmas."