The Toronto-based entertainment company’s shares fell more than 29 per cent to a low of $4.72 on the Toronto Stock Exchange on Monday, after Cineworld Group announced it would temporarily close all its theatres in the U.S. and Britain. The two companies are engaged in a court battle after an acquisition deal went south. (The Logic)

Talking point: Cineworld said it would temporarily close its 536 U.S. and 127 U.K. theatres starting Thursday “in response to an increasingly challenging theatrical landscape and sustained key market closures due to the COVID-19 pandemic.” It said it “cannot provide customers … with the breadth of strong commercial films necessary for them to consider coming back to theatres” during the pandemic as studios remain reluctant to release new films. About 45,000 employees will be impacted by the closures. Cineworld entered into a $2.8-billion takeover deal for Cineplex in late 2019, but terminated the agreement in June, citing “certain breaches … of the arrangement agreement.” Cineplex started legal action against Cineworld in July, alleging the company “wrongfully repudiated the transaction.” Cineplex’s theatres remain open, with more than 1.5 million guests returning since it reopened in late August. In that time Cineplex has reported four confirmed cases of COVID-19 at its theatres.