Ster-Kinekor is preparing to lay off almost a third of its 728 employees (236 people, or 32% of the workforce) amid plans to close up to nine of its cinemas in Gauteng, KwaZulu-Natal, and the Western Cape.<\/p>\n\n\n\n
This comes just two years after the company exited business rescue.<\/p>\n\n\n\n
The cinema chain has stated that it needs to undergo restructuring due to factors such as a challenging economic environment, load-shedding, financial constraints, and the impact of the Hollywood strikes which saw many movie releases have been moved to 2025. <\/p>\n\n\n\n
These factors have resulted in substantially lower cinema attendance, which has further impacted revenue.<\/p>\n\n\n\n
\u201cAs these are forces largely out of the business\u2019s control and the financial impact is likely to endure for some time, Ster-Kinekor Theatres has had to review its cost structure to ensure the continued survival and sustainability of its business,\u201d the company said.<\/p>\n\n\n\n
The nine cinema locations earmarked for closure: <\/p>\n\n\n\n
Ster-Kinekor served staff with a section 189(3) notice back in February 2024, beginning the retrenchment process of 236 of its 728 employees.<\/p>\n\n\n\n
The company said that \u201cSter-Kinekor Theatres issued a notice to all staff informing them of the company\u2019s intention to proceed with a restructure under Section 189 of the Labour Relations Act, and to begin the consultation process.\u201d<\/p>\n\n\n\n
Affected positions include those in the CEO\u2019s office, marketing, sales, human capital, business operations, content, finance, head office, regional operations, and information technology.<\/p>\n\n\n\n
Ster-Kinekor said the \u201ccinemas will be closed at gradual intervals, conditional on lease negotiation agreements\u201d.<\/p>\n\n\n\n
Additionally, the company announced a review of eight more cinemas\u2014Secunda, Wonderpark, Bedfordview, Cradlestone, Mooi River, N1 City, Rosebank Nouveau, and Rustenburg\u2014for potential closure. This could lead to the loss of 69 jobs.<\/p>\n\n\n\n
Gateway in KwaZulu-Natal would have only one role affected.<\/p>\n\n\n\n
In January 2021, Ster-Kinekor entered business rescue due to the severe effects of the Covid-19 pandemic and lockdowns. Although the company was profitable before the pandemic, despite competition from streaming services, cinema closures, seating limitations, and curfews led to significant financial losses.<\/p>\n\n\n\n
Additionally, the pandemic and ensuing lockdowns led to numerous film release delays, intensifying the challenges faced by the company.<\/p>\n\n\n\n
As a result, the board of directors decided to initiate business rescue to address these issues and take advantage of legal protections.<\/p>\n\n\n\n
The company successfully emerged from business rescue in November 2022, following an acquisition that secured a cash infusion of R250 million from UK-based Blantyre Capital and South African Greenpoint Capital.<\/p>\n\n\n\n