U.K. Cinemas Shut After Prime Minister Issues Virus Warning
Odeon, Cineworld to Close U.K. Cinemas Until Further Notice
(Bloomberg) --
Britain’s three largest cinema chains are closing their movie theaters a day after Prime Minister Boris Johnson urged the public to avoid all “non-essential” contact with other people.
On Monday, Johnson said Britons should avoid social venues such as theaters or pubs to slow the spread of the coronavirus. His advice stopped short of a prohibition on attending mass gatherings, which may complicate efforts by theater chains and other cultural organizations to claim compensation from insurers for lost revenues.
The government’s measures “are only advisory, rather than an outright ban,” Caroline Norbury, chief executive officer of trade group Creative Industries Federation, said in a statement Monday. “We are deeply concerned that creative organizations and cultural spaces will find they are unable to claim compensation for the huge losses they will experience as a result of COVID-19.”
Cineworld shares have fallen 90% this year as it warned that a prolonged closure of theaters could put it at risk of breaching lending covenants. Yesterday an activist fund with a stake in Toronto-based chain Cineplex Inc. urged Canada’s government to block a planned takeover by Cineworld.
To contact the reporters on this story: Thomas Seal in London at tseal@bloomberg.net;Tiago Ramos Alfaro in London at talfaro1@bloomberg.net
To contact the editors responsible for this story: Jennifer Ryan at jryan13@bloomberg.net, Frank Connelly
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