The world's second-largest cinema chain which has two multiplexes in Swindon is preparing to file for bankruptcy, it has been reported.

Cineworld shares have plummeted after the Wall Street Journal reported that the cinema business is preparing to file for bankruptcy “within weeks”.

Two of Swindon's biggest cinemas are the Cineworlds in Shaw Ridge Leisure Centre and Regent Circus.

The only other major cinema venue in Swindon is the Empire Cinema at Greenbridge Retail Park.

Cineworld is apparently considering insolvency proceedings in the UK, according to the WSJ. It is expected to file a chapter 11 petition in the US.

Shares dived by two-thirds within minutes of reports that Cineworld Group Plc bosses have hired lawyers from Kirkland & Ellis and consultants from AlixPartners to advise the bankruptcy process.

Cineworld has declined to comment when approached by PA.

The reports cast uncertainty over the future of thousands of workers at its 127 UK cinemas, including the two Swindon branches.

Head of UK union Bectu Philippa Childs said: “This is very worrying news, not least for the UK’s Cineworld and Picturehouse workforce, who have already been through a tumultuous time during the pandemic.

“We will do everything we can to support our members during this challenging time and will be looking to Cineworld to mitigate the impact of any bankruptcy arrangements on its employees.”

Cineworld told the London Stock Exchange on Wednesday: “Despite a gradual recovery of demand since reopening in April 2021, recent admission levels have been below expectations.

“These lower levels of admissions are due to a limited film slate that is anticipated to continue until November 2022 and are expected to negatively impact trading and the group’s liquidity position in the near term.”