Majestic Cinemas, a major regional chain with nine cinemas across Queensland and New South Wales, has entered voluntary administration.
Although major blockbuster films such as Barbie and Oppenheimer reinvigorated the broader industry last year, SV Partners administrators Terry Grant van der Velde and Terrence John Rose were appointed on January 31.
The independent cinema chain has businesses in Nambour, Port Macquarie, Inverell, Nambucca, Wynnum, Kempsey, Singleton, Sawtell, and Nelson Bay.
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Creditors will meet in Brisbane on February 12 to discuss the future of the cinema chain, according to the Australian Securities and Investments Commission (ASIC).
“At this stage, all Majestic Cinemas remain open and selling tickets to customers,” the cinema announced on its website.
The rising cost of living, lingering effects of the COVID pandemic, and the Hollywood writers’ strike affecting the industry all played a role in the decision to enter voluntary administration, the Majestic Cinemas board told IF Magazine.
“We call on our loyal customers and others to come out and support our local regional cinemas,” they told the screen content outlet.
“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.”
7NEWS.com.au has contacted SV Partners for comment.
