Covid-19 deals Ster-Kinekor a horror movie

The company, which runs the majority of theatres across South Africa, has confirmed it entered business rescue on Wednesday, 27 January.

In a statement, Ster-Kinekor says it has been hard hit with Covid-19 restrictions that were implemented in March 2020 and saw movie theaters only re-opening again in August last year.

“Since then the Company has been operating under various forms of restriction, including curfews and mandatory limits to the number of guests per auditorium," reads the statement.

“In addition, there has been an impact of the rescheduling of blockbuster film contents from the original date.”

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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 Ster-Kinekor has been trading at a loss, as the company continued to incur costs,” continues the statement.

 “The continued lack of content for the next 4-5 months means that the business is heading for further operational and cash flow challenges."

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. 

Consultations with all affected persons and stakeholders are also expected to begin immediately.

Meanwhile, movie goers can still book their seats online to watch eagerly anticipated movies as theatres will remain open.