Speculation is mounting that cinema chain The Light will buy Showcase Cinemas’ 16 venue UK circuit which has been up for sale since last summer.
The Times reported at the weekend that talks on the deal are “at a relatively advanced stage.”
“Some of the rumours appear to be a little premature,” a spokesperson for The Light told Screen without dismissing the story.
Showcase owner Paramount has been looking to offload its sites since completing its merger with Skydance last year.
If the deal goes ahead, it would make The Light the UK’s fourth biggest cinema circuit operator after Vue, Odeon and Cineworld. The Light currently has 13 sites.
Sources contacted by Screen expect the deal to go through by early May.
Cinema development expert John Sullivan, who was a co-founder of The Light in 2007, believes that the Showcase circuit would make “a really good fit” for the chain.
“The mix of leisure and cinema is a winning formula,” Sullivan commented of The Light’s operating model.
A typical Light venue offers not just cinema but a wide range of other activities including axe throwing, bowling, mini golf, karaoke, interactive darts and pool as well as dining and drinks. It has been owned by investor Luke Johnson’s Risk Capital Partners since 2024.
“The outcome is compelling. You don’t have to worry about the fractional returns that cinema delivers. It [the leisure activities] virtually insulates the cinema. It still enables you to get a great cinema experience but the balance sheet is well bolstered by the mix of leisure,” said Sullivan who was involved in development of The Light from 2007 until 2024 said.
Showcase has sites in cities including Nottingham, Reading, Leicester, Liverpool and Leeds as well as a 17-screen venue in Kent’s Bluewater shopping centre. The Light has cinemas in locations such as Redhill, Sheffield, Bolton and Cambridge.
It is estimated that the Showcase sites will require £5-6m each of investment to refurbish. This will come alongside the price to buy the circuit, reported as being around £55m. 11 of the Showcase sites are freehold, five are leasehold.
One scenario being floated by some observers is that retail tycoon Mike Ashley will take on the freehold of the sites and that The Light will then become his tenants. It’s conceivable that Ashley will also look to take a stake in The Light.
Some in the industry are concerned that The Light will be saddled with a disproportionate debt load in the deal - and this may be prove a sticking point in negotiations.
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