Ster-Kinekor Theatres, the largest movie exhibitor in Africa, plans to cut nearly a third of its 728 employees and close up to nine cinemas in the Western Cape, Gauteng and KwaZulu-Natal.
Also read: Ster-Kinekor enters business rescue
The company exited business rescue in 2022 due to the severe impact of the COVID-19 pandemic and lockdowns. It struggled to compete with streaming services, cinema closures, seating limitations and curfews.
As reported by BusinessTech, the cinema chain attributed the restructuring of the company to a challenging economic environment, loadshedding, financial constraints and the impact of Hollywood strikes, which resulted in many movie releases being pushed to 2025.
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It further states that revenue has been impacted by lower cinema attendance.
‘As these are forces largely out of the business’s control and the financial impact is likely to endure for some time, Ster-Kinekor Theatres has had to review its cost structure to ensure the continued survival and sustainability of its business,’ the company said in a statement.
These cinemas will be closed:
- Bayside (Western Cape)
- Boardwalk (KwaZulu-Natal)
- Mimosa (KwaZulu-Natal)
- Shelly Beach (KwaZulu-Natal)
- Cedar Square (Gauteng)
- Maponya (Gauteng)
- Matlosana (Gauteng)
- Southgate (Gauteng)
- Sterland (Gauteng)
In February, Ster-Kinekor served staff with a section 189(3) notice to start the process of retrenching 236 employees.
Some of the affected positions include those in the CEO’s office, marketing, sales, human capital, business operations, content, finance, head office, regional operations and information technology.
The cinemas will be closed at ‘gradual intervals, conditional on lease negotiation agreements’, the company said.
Eight more cinemas, including Secunda, Wonderpark, Bedfordview, Cradlestone, Mooi River, N1 City, Rosebank Nouveau, and Rustenburg are being reviewed for potential closure.
These closures could result in the loss of 69 jobs.
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