The curtain will fall on several Ster-Kinekor cinemas. Photo: iStock
Just two years after pulling out of the company’s bailout, Ster-Kinekor announced plans to lay off 236 workers and close up to nine of its cinemas in Gauteng, KwaZulu-Natal and the Western Cape.
The South African film giant said it needed to restructure due to issues such as a difficult economic situation, shedding burden, financial constraints and the effect of Hollywood moves that have postponed many film releases until 2025.
These points led to a sharp drop in movie attendance, which affected revenue.
“Since these are forces that are largely beyond the company’s control and that the monetary effect will likely last for some time, Ster-Kinekor Theatres have had to revise their charge design to ensure the survival and sustainability of their operations. “” said the corporation.
It’s basically the cheapest cinemas, whose tickets cost between R65 and R75, that are affected by this decision. The nine cinemas that will have to close are:
The cinema chain issued a notice to its section 189(3) in February 2024, initiating the dismissal procedure of 236 of its 728 employees.
Ster-Kinekor stated that “cinemas will close at slow intervals, subject to lease negotiation agreements” over a six-month period.
In addition, the company is also finalizing 8 more theaters, which would result in the loss of 69 more jobs, according to MyBroadband.
The Ster-Kinekor cinemas involved are:
According to BusinessTech, Ster-Kinekor undertook the rescue of its company in January 2021 due to the severe effects of the Covid-19 pandemic and lockdowns.
Although the business was successful before the pandemic, despite streaming service festivals, theater closures, seating limitations, and curfews have led to significant monetary losses.
In addition, Netflix, Amazon, and Disney have invested in blockbuster original movies streamed directly, with monthly subscriptions at a fraction of the value of a movie ticket.
Despite the postponement of releases last year and until 2024, two titles released in 2023 gave Ster-Kinekor a boost.
Barbie and Oppenheimer launched in July 2023. In September 2023, Lynne Wiley, Ster-Kinekor’s lead marketing director, told MyBroadband that Barbie was the most productive name of the year so far.
“Barbie and Oppenheimer performed amazingly on the Ster-Kinekor circuit,” Wiley said.
“Barbie’s movie attendance is number one to date for calendar year 2023 and ranks 20th on the list of the all-time hundred box office in Southern Africa as of August 2023. “
Oppenheimer was eighth at the time in the third calendar year of the Ster-Kinekor circuit. It was also the highest-attended IMAX release of the calendar year.
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