Starkinekor has designated nine theaters for closure and is considering several others as it plans to lay off about a third of its workforce.
Less than two years after emerging from business rescue, Sterkinekor plans to lay off 236 employees and close up to nine cinemas in Gauteng, KwaZulu-Natal and the Western Cape. announced.
South Africa's film giant said the restructuring was necessary due to factors including a difficult economic environment, strain relief, financial constraints and the impact of the Hollywood strike, which has seen many film releases postponed to 2025.
These factors have significantly reduced cinema attendance, further impacting revenue.
“These are primarily impacts beyond the control of the business, and as the financial impact is likely to continue for some time, Starkinekor Theaters will review its cost structure to ensure the survival and sustainability of the business. “There was a need,” the company said.
Which Star Kinekor cinemas will be closed?
This decision will primarily affect inexpensive theaters with ticket prices between R65 and R75. The following nine movie theaters have been decided to close:
- Bayside (Western Cape)
- Boardwalk (KwaZulu-Natal)
- Mimosa (KwaZulu-Natal)
- Shelly Beach (KwaZulu-Natal)
- Cedar Square (Gauteng)
- Maponya (Gauteng)
- Matlosana (Gauteng)
- Southgate (Gauteng)
- Starland (Gauteng)
phased closure
The cinema chain sent employees Section 189(3) notices in February 2024 and began the process of retrenchment of 236 of its 728 employees.
“Cinema theaters will be closed in stages over a period of six months, subject to agreement in lease negotiations,” Starkinekor said.
Star Kinekor movie theaters under consideration
The company is also considering plans to close eight more movie theaters, which would result in the loss of an additional 69 jobs. my broadband.
The affected Star Kinekor movie theaters are:
- Secunda
- wonder park
- bedford view
- cradle stone
- moi river
- N1 City
- rosebank nouveau
- Rustenburg.
Business Rescue and blockbuster originals straight to your streaming.
according to business techStar Kinecor entered the business rescue package in January 2021 following the severe impact of the COVID-19 pandemic and lockdown.
The company was profitable before the pandemic despite competition from streaming services, but suffered significant financial losses due to movie theater closures, limited seating and stay-at-home orders.
Additionally, video streaming services Netflix, Amazon, and Disney are investing in direct streaming of blockbuster originals, with monthly subscriptions available at a fraction of the price of a movie ticket.
“Barbenheimer” effect: too little, too late for Starkinecol
Despite having rescheduled releases last year and 2024, the two titles released in 2023 gave Ster-Kinecor a big boost.
barbie and oppenheimer Both were released in July 2023. In September 2023, Lynne Wiley, chief marketing officer at Ster-Kinecor, said: my broadband that barbie It was the top title of the year so far.
“both barbie and oppenheimer He performed very well on the Star Kinekor circuit,” said Wylie.
“barbieranks first in cinema attendance so far in calendar year 2023 and ranks 20th on the list of Southern Africa's top 100 box office grossers of all time as of August 2023. ”
oppenheimer At the time, Star Kinekor Circuit 3 was ranked 8th in terms of attendance. It was also his top IMAX release with the biggest audience of the calendar year.
