Cineworld said to be leaning towards CVA

The owners of Cineworld are reportedly leaning towards putting its British operations through a formal restructuring process after holding initial talks about a sale with prospective buyers.

According to Sky News, the cinema chain and its advisers at AlixPartners have begun formally exploring a company voluntary arrangement.

The details of a potential Cineworld CVA are still to be determined, with no visibility yet about any site closures or rent negotiations with landlords.

However, one insider told Sky that an insolvency mechanism such as a CVA was now far more likely than an outright sale of the business.

Sky News revealed earlier this month that Cineworld had drafted in AlixPartners to consider a sale.

The company trades from more than 100 sites in Britain, including at the Picturehouse chain, and employs thousands of people, although its public relations adviser refused to confirm either figure.

In a statement issued to Sky News earlier this month, it said: "Like many businesses, we are continually reviewing our UK operations."