A cinema chain with a Sunshine Coast venue has gone into voluntary administration, amid hopes that a restructure will allow it to bounce back.
Majestic Cinemas has appointed administrators to continue to trade, with optimism it can regroup and move forward.
The business, which has eight venues around regional Australia, issued a media release that outlined its plight.
“There have been a number of circumstances that have affected our ability to trade by reducing box office sales, including COVID-19 and the resulting loss of movie production, the impact of natural disasters (including floods and fires), and the recent writer and actor strikes in Hollywood,” they said.
“As a result, the board of Majestic Cinemas has decided to call in voluntary administrators.
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“The administrators will deal with creditors and look at ways to restructure the business so that it can trade profitably into the future at as many of the current sites as possible.
“We believe this is the best course of action at this time.
“We call on our loyal customers and others to come out and support our local regional cinemas.”
Majestic Cinemas Nambour is a four-screen 724-seat complex located in C-Square in the Nambour town centre.
It screens blockbusters as well as a selection of films and presentations from around the world, including operas, theatres, musicals, concerts, foreign and art house films.
It also plays host to a number of community events including film festivals, private business and group events, open caption screenings, as well as fundraising and specialty events.
“We understand how important these venues are to our local communities and remain committed to providing the same great entertainment and service to as many of the towns and areas we currently operate in as possible,” Majestic Cinemas said via the media release.
“We thank our loyal customers for their ongoing support as we work through this process.
“Our session times for each cinema are available online and will be updated as per normal. Please visit our website to find a movie and suitable time for you to enjoy and support our business.
“Support from the government, banks and many of our landlords helped us get through the initial COVID-19 period.
“Unfortunately, while many industries bounced back from COVID-19 in 2022, we have faced additional challenges caused by the pause in movie production on the back of COVID-19 restrictions, reducing major movie releases by about 30 per cent, with revenue also being reduced by the same amount.
“While 2023 promised to be a better year, the timing of the strikes in Hollywood by the writers and actors in the second half of the year was unfortunate and had a significant impact on the release of major movies, and the effects will continue to be felt in the cinema industry for some time.
“The impact of cost-of-living pressures on consumers has made it more difficult for any business that relies on discretionary consumer spending, and cinemas are no exception.
“Rising costs, such as electricity and the impact of lending rates at levels not seen for many years, have not only made running a business harder, but have forced consumers to choose more carefully where they spend their hard-earned money.
“With so many of these factors outside Majestic Cinemas’ control, it is clear that a new operating model is required to align the business to the future sustainability of the movie industry.
“Majestic Cinemas, its staff and management, along with many of our landlords, have been working tirelessly over the last four years, and while there has been some improvement over this time, it did not happen as fast as the business needed it to.
“Majestic Cinemas thanks its amazing staff, who have worked tirelessly and flexibly, particularly over the past four years as the situation changed rapidly, allowing Majestic to continue to offer its customers a high-quality cinematic entertainment experience, with friendly local service.
“Our immediate focus will be to work through the restructure to achieve a positive outcome for the business and its customers, staff and suppliers.
“Whilst Majestic Cinemas is continuing to trade, we urge your patience as we restructure the business.”
For FAQs visit Majestic Cinemas. Any inquiries from creditors or suppliers are directed to contact majesticcinemas@svp.com.au.
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