Ster-Kinekor cinemas to remain open amid financial woes

Ster-Kinekor cinemas will remain open during business rescue process.
Ster-Kinekor cinemas will remain open during business rescue process.
Photo: Vladimir Vladimirov/Getty Images

Ster-Kinekor's big screens will continue playing while the company undergoes the process of business rescue.

Fin24 reports that the cinema chain announced on Friday that it went into voluntary business rescue this week. The process aims to rehabilitate the business and return it to profitability.

During the hard national lockdown in South Africa, last year cinemas were closed for five months which dealt a massive blow to the industry. They reopened in August 2020 with stringent hygiene and social distancing rules in place.

READ MORE | Ster-Kinekor cinemas reopen – Here's what you need to know

Ster-Kinekor said in a statement: "As a result of the Covid-19 pandemic and the consequent economic lockdown instituted by the South African Government at the end of March 2020, all cinemas were required to shut down, and only permitted to reopen under strict conditions as from the end of August.

"These factors have meant that Ster-Kinekor has been trading at a loss, as the company continued to incur costs. The continued lack of content for the next 4-5 months means that the business is heading for further operation and cash flow challenges.

The statement added that the cinemas will remain open under strict Covid-19 protocols such as temperature checks, sanitising, the wearing of masks, and social distance by keeping every two seats empty, reports EWN.

Compiled by Leandra Engelbrecht

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