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MyBroadband reports that Ster-Kinekor CEO Mark Sardi believes cinema has a bright future in SA despite headwinds like the popularity of streaming services, load-shedding, and the effect of the Hollywood actor’s strike.
Ster-Kinekor entered voluntary business rescue proceedings in January 2021. It exited business rescue in November 2022. However, it recently announced plans to slash a large portion of its workforce and shutter several cinemas nationwide. It noted that factors like the challenging economic environment in SA, load-shedding, and the Hollywood strikes had led to significantly lower attendance. “As these are forces largely out of the business’s 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,” the company indicated. On 13 February 2024, it issued affected staff with so-called section 189(3) notices. It plans to retrench 236 of its 728 employees. Affected positions include those in the CEO’s office, marketing, sales, human capital, business operations, content, finance, head office, regional operations, and information technology. It also revealed plans to close up to nine cinemas in SA’s most populous provinces. It is also reviewing plans to close another eight cinemas. Some commentators have suggested that the cinema chain exited business rescue prematurely. In an interview with 702, Sardi, acknowledged that some aspects of the business should have been evaluated more closely.
- Read the full original of the report in the above regard by Myles Illidge at MyBroadband
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