Sunday 25 July 2021 4:40 pm

Cineworld faces legal challenge over alleged unpaid rent

Cineworld is facing a £1m legal challenge over allegedly not paying rents for a Southampton site.

Marina Developments, a developer based in Southampton, claims that Cineworld has not paid rents and other charges since last March.

Cineworld was earlier ordered to pay rent to landlord AEW UK Core Property Fund after demanding a string of rental holidays.

The court case comes despite the government’s recent announcement that its commercial rent ban would be extended until next year.

It is expected that more high profile rows between commercial tenants and landlord will be plunged into the spotlight this year as the economy continues to recovery post-Covid.

The FTSE 250 company, and the second largest cinema chain in the world, last year suffered an annual loss of £3bn as the pandemic crippled the sector.

It was reported last year that the chain was looking into an insolvency called  company voluntary arrangement to slash rents, however it never eventuated.

Shares in Cineworld have slumped by 30 per cent over the past two months, despite its cinemas reopening in May after months of strict Covid restrictions.

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