Shares of Cineworld PLC (LON: CINE) have received a major boost this week after its Regal cinema chain said it will open 11 locations in New York state starting from tomorrow.
This move comes just about two weeks after Cineworld decide to shut more than 500 Regal Cinemas in the U.S. Cineworld’s CEO Mooky Greidinger explained the decision to shut its cinemas by saying that the business is losing less money when cinemas are shut.
Cineworld’s decision to reopen 11 of its sites come three days after New York Gov. Andrew Cuomo announced they could start to reopen on Oct. 23. Regal, the second-largest movie theater chain, said that other U.S. markets will remain closed. Only seven cinemas in California remain open.
“We are grateful to finally have initial guidelines from the state. With the implementation of robust health and safety measures as a part of our commitment to the CinemaSafe protocols, our New York theatres and staff are thoroughly prepared for a safe and sustainable reopening,” said Greidinger.
“After seven months, we are thrilled to welcome back our beloved staff and customers. We are sure that the next step will be opening of cinemas in New York City, which is still critical for the recovery of the industry.”
Cineworld share price jumped over 14% yesterday on this news before adding nearly 15% today to total weekly gains to more than 49%.
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