BOSSES at Cineworld - which operates the town centre’s flagship multi-screen cinema - are demanding a reduction in rent from council landlords and have threatened to start stripping out the building unless it is granted.

The council has called an urgent meeting next week to discuss ‘interim lease amendments’ on the cinema, a key part of the £210m Glass Works retail and leisure development.

Cineworld has already announced the closure of six of its loss-making UK cinemas as part of a major restructuring of the business which struggled to bounce back from the pandemic and was then hit by the impact of the screen writers’ strike in America which led to a shortage of blockbuster releases.

Cineworld said it had been forced to act ‘against a background of increasingly high and unsustainable operating costs’.

The Chronicle has obtained a report prepared for Cineworld landlords across the country which warns unless reduced terms are offered, it will start stripping out seats.

The company is two years into a 20-year lease on the 13-screen complex which has already received more than £2 million in financial support from the council.

And while sources have told the Chronicle the Glass Works branch is trading above expectations, the group as a whole needs to undergo a radical restructure if it is to survive.

A spokesperson said: “We are implementing a restructuring plan that will provide our company with a strong platform to return our business to profitability, attract further investment and ensure a sustainable long-term future for Cineworld in the UK.”

Attracting a big name cinema operator was seen as vital to the ambitious Glass Works development, acting as a lure for other popular high street brands such as Nando’s and TGI Fridays.

The rent was agreed in 2017 - five years before the cinema finally opened - and three years before the Covid-19 pandemic.

The Chronicle understands the proposed reduction is relatively small and remains within market rent for the building considering the changes in the cinema market since Covid.

Coun Robin Franklin, cabinet spokesperson for regeneration and culture, told the Chronicle: “Along with many of Cineworld’s other landlords around the country we are being asked to adjust the rent.

“This is still going through a legal process and has yet to be agreed.

“While the proposed change in rent is commercially sensitive, it is in line with market rent for the building and would, if approved, continue to deliver a financial return on investment to the council.

“The changing way people enjoy films has been difficult for lots of cinemas, however, Cineworld has confirmed Barnsley is one of its profitable sites and its future will be secured through these restructure proposals.

“Barnsley Council is committed to ensuring Barnsley town centre is thriving with an array of retail, health, leisure and hospitality businesses and a dynamic events programme.

“We’re proud to have a fantastic offer with two cinema operators in our town centre.

“This has been a huge factor in attracting the investment and increase in visitor numbers we’ve seen in the last few years.

“This benefits all businesses and our local economy.

“We are committed to building on this momentum and will continue to support all businesses to ensure the continued success of the town centre as an inviting and vibrant destination for both locals and visitors.”

But rival cinema operator Rob Younger of the Parkway on Eldon Street said the council should not be be propping up private businesses.

He added: “It does feel like the council backed a lame horse to begin with. Cineworld were heavily in debt pre-Covid and are now in serious financial trouble.

“We (The Parkway Group) tried our best to secure the tenancy of the new cinema several years ago but weren’t even considered by the council, despite being a debt-free family business with the largest independent multiplex cinema in the UK at the time (Cleethorpes).

“I am concerned that despite receiving over £2m in handouts from the council, Cineworld are now demanding a further rent reduction.

“Are the local council taxpayers expected to continue to fund this failing company? Parkway Barnsley does pay council tax, as do I and all of our employees, who all live in the town.

“What incentive will the council offer us, or any other business in the town? Other businesses have been evicted from the Glass Works due to rent payment issues but apparently its OK for Cineworld to make demands and threaten to strip the building and walk away if they don’t get their way. This is totally unfair.”