Ster-Kinekor has entered voluntary business rescue, aimed at rehabilitating the company as it continues to suffer due to the Covid-19 pandemic and lockdown.
The group's board of directors said that up until February last year, the business was profitable, with good prospects of future and ongoing profitability from the pipeline of blockbuster film content that had been scheduled.
In a statement, Ster-Kinekor says it has been hard hit with Covid-19 restrictions that were implemented in March 2020 and saw movie theatres only re-opening again in August last year.
“Since then the Company has been operating under various forms of restrictions, including curfews and mandatory limits to the number of guests per auditorium", it said.
Ster-Kinekor’s financial position was further exacerbated by the Covid-19 second wave which hit South Africa during the festive season.
“These factors have meant that the company has been trading at a loss, as it continued to incur costs,” the Board said.
Stefan Smyth, a Partner at EY South Africa, has been appointed as the Business Rescue Practitioner.
The company is engaging with employees who have been requested to continue with their normal working duties.
Meanwhile, moviegoers can still book their seats online to watch eagerly anticipated movies as theatres will remain open.
