Ster-Kinekor Theatres has announced it has commenced voluntary business rescue proceedings – in an attempt to facilitate the company’s rehabilitation.
The move is due to the negative financial impact of the coronavirus pandemic – and last year’s lockdown restrictions that required all cinemas to close.
In a statement, Ster-Kinekor says despite cinemas being permitted to reopen under strict conditions since August 2020, the firm has been trading at a loss.
It says the foreseen lack of film content means the business is heading for further operational and cash flow challenges.
The board says it believes that the business rescue option will assist the company to return to profitability – once operating restrictions have been lifted – and when international film distributions start to flow again.
Ster-Kinekor has applied for business rescue. The bloodbath is continuing ?.
— Kgoshi Ya Lebowa (@Marcellomj) January 29, 2021
Ster Kinekor enters voluntarily business rescue…covid is coming for everything
— ntsiki (@ntsikiZN) January 29, 2021
