Vue International is Europe’s largest independent exhibitor, based in the UK and operating 225 theatres across eight European countries with a total of almost 2,000 screens.
After struggling with COVID’s ravages from 2020 to 2022, Vue enjoyed a bounce-back year in 2023 on the strength of a handful of blockbusters. After the pressures of the pandemic left exhibitors with some lingering financial weakness, a new challenge has arrived triggered by Hollywood’s extended labor strikes last year. The halt to new production and moratorium in actors promoting their project led to another box office dip, starting last fall and expected to continue through the first half of 2024.
Last week, Vue reported that it was in negotiation with certain lenders to convert hundreds of millions of dollars in outstanding debt into ownership in the company. The transaction would also result in an infusion of $60 million in new cash. This would be the second such arrangement in the last 18 months, with an initial debt-for-equity swap taking place in July 2022.
Vue CEO Tim Richards explained, “We are in discussions with our shareholders and lenders to ensure the business has the right capital structure to thrive and maximize exciting opportunities ahead once the pipeline of new content improves later this year and in 2025.” The fact that its lenders are willing to take this step should be seen as a vote of confidence in the company, by taking a larger stake in the company and offering a fresh tranche of capital.
Many industry analysts predict that the box office in 2025 will return to pre-pandemic levels, with an increased number of new releases supporting that recovery.
