In a letter, the company updated shareholders on its current trading, liquidity position and capital structure. A spokesperson for the company said: “despite a gradual recovery of demand since re-opening in April 2021, recent admission levels have been below expectations.”

As a result of this it, the company has decided to take “proactive steps to ensure it has the balance sheet strength and flexibility to adapt to market conditions,” including “significant previously disclosed operational and financial initiatives to manage costs and enhance liquidity”

In order to make take necessary action Cineworld has been discussing options with stakeholders which could lead to a “very significant dilution of existing equity interests in Cineworld.”

The announcement comes after the company staved off bankruptcy twice in the past two years, and was recently ordered to pay c.$1 billion (c.£829.5m) in a failed acquisition deal with Canadian cinema chain Cineplex. This series of financial woes have likely worried shareholders and led to the fall in the company’s share price.