Independent cinema chain Majestic Cinemas, which operates nine sites across northern NSW and south-east Queensland, has entered voluntary administration, citing reduced box office due to the impact of COVID-19 and the US strikes on production and release schedules, as well as rising costs and natural disasters, including floods and fires, in the region.
The cinemas remain open to the public and trading. 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.
In a statement, the board said they believed this the best course of action, with the hope a restructure will place the business to succeed in a changed industry and economic environment.
“We call on our loyal customers and others to come out and support our local regional cinemas,” they said.
“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. We thank our loyal customers for their ongoing support as we work through this process.”
The board said that while support from government, banks and landlords helped Majestic get through the initial phase of the pandemic, it has faced additional ongoing challenges, predominantly due to a reduction in major film releases. It claimed that while improvements had been made over the last four years, they did not happen as fast as the business needed them to.
“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,” they said.
“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 has operated since 2002, starting as a single site in NSW’s Nambucca Heads and expanding to include Nelson Bay, Singleton, Port Macquarie, Sawtell, Kempsey and Inverell, as well as Nambour and Wynnum in Queensland. The cinemas’ CEO, Kieren Dell, is the vice president of Independent Cinemas Australia.