Cineworld lost more than a third of its stock market value during trading today, after the company confirmed that it will close its cinemas indefinitely this week.
The company said it will shut all cinemas in the UK and the US in the face of a “challenging theatrical landscape” in which many studios have delayed releasing movies.
Cineworld’s shares fell by 36% – the sharpest drop today from a FTSE 350 company – to close at 25.2p. The only time the company’s shares have been lower was mid-March, shortly before the UK went into lockdown.
Last month the company revealed a £1.3bn loss and said it would need to secure new capital to survive a second lockdown.
Among the day’s most notable REIT rises and falls were Hammerson – up 5.5% to 17.22 – and Ediston Property Investment Company – down 3.7% at 47.4p.
The FTSE 100 and 250 each closed up – a 0.7% rise to 5,942 and 1.08% to 17,583, respectively.
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