Ian Fraser, a former boss of Kwik Fit, is expected to be announced as the new chairman of Vue, Europe’s biggest privately owned cinema operator, later this week. Fraser, who has also chaired the Priory Group chain of addiction rehab facilities and R&R Ice Cream, has reportedly agreed to join Vue next month. This news comes after the group, which is one of Britain’s largest cinema chains, recently completed its second debt-for-equity swap in a span of 18 months in order to improve its financial stability.
Currently, Fraser serves as the chairman of M Group Services, a provider of infrastructure services, and has sat on the boards of companies such as Punch Taverns. His appointment follows the departure of Stella David, who stepped down from her position as chairman after being named the interim chief executive of Entain, the FTSE 100 gambling group, and is now its chair.
Vue founder and chief executive Tim Richards expressed his excitement about Fraser joining the company, stating, “Audiences are returning to our cinemas in record numbers and we’re continuing to invest and innovate to provide our customers with the very best in seat, screen and sound.”
In its recent balance sheet restructuring, Vue converted hundreds of millions of pounds of debt into equity, with an injection of approximately £50m of new capital into the company. The Hollywood strikes last year had a significant impact on the global film-making industry, affecting studios, distributors, and cinema operators like Vue.
Vue currently employs over 8,000 people and operates more than 225 multiplexes in various countries, including the UK, Ireland, Germany, Italy, and Taiwan. The company’s successful restructuring further solidifies stakeholders’ confidence in its long-term prospects, with highly anticipated releases this year such as the third instalment of the Deadpool franchise and Gladiator 2.
Under the leadership of Richards, Vue previously underwent a restructuring in early 2023, which saw £470m of debt eliminated and the company acquired by its lenders, led by Barings and Farallon Capital Management, a US hedge fund. With the support of these firms, Vue explored an offer for parts of Cineworld, its larger multinational competitor, which underwent an insolvency process last year. While a deal did not materialize, industry sources suggest that Richards remains interested in leading industry consolidation in the future.
There are also uncertainties surrounding the long-term future of AMC, the American owner of Odeon Cinemas. Previous owners of Vue, Alberta Investment Management Corporation (AIMCo) and Omers, the Canadian pension funds, took control of the company in 2013 in a deal worth nearly £1bn. They oversaw a series of acquisitions that helped transform Vue into Europe’s largest privately held cinema operator. In 2019, the company had a record year, and its owners began to explore a potential sale. However, a deal was not reached before the COVID-19 crisis severely impacted the leisure industry, forcing Vue to furlough thousands of employees and shut down its sites for several months.
