Majestic Cinemas appoint administrators after reduced box office sales Nambucca Valley Nambucca Valley - popup ad Nambucca Valley News by News Of The Area - Modern Media - February 9, 2024 Movie goers Alyssa MacKay and Margaret Wood, pictured here at Majestic’s Nambucca Heads Cinema, are hopeful, like so many other locals, that Majestic is able to keep operating into the future LAST week Majestic Cinemas made the shock announcement they had appointed administrators to continue to trade the business, in the hope that a restructure will allow them to remain operational. The prominent regional cinema chain operates at sites in Nambucca Heads, Kempsey, Sawtell, Port Macquarie, Singleton, Inverell, Nelson Bay and also has cinemas at Wynnum and Nambour in Queensland. Advertise with News of The Area today. It’s worth it for your business. Message us. Phone us – (02) 4981 8882. Email us – media@newsofthearea.com.au “There have been a number of circumstances that have affected our ability to trade by reducing box office sales, including Covid-19 and the resulting loss of movie production, the impact of natural disasters such as floods and fires, and the recent writer and actor strikes in Hollywood,” Majestic Cinemas CEO Kieren Dell told News Of The Area. “As a result, the Board of Majestic Cinemas has decided to call in Voluntary Administrators who 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 the announcement Majestic stressed that they understand how important these cinemas are to local communities, and remain committed to providing the same great entertainment and service to as many of the towns and areas they currently operate in as possible. Support from the government, banks and many of their landlords helped Majestic get through the initial Covid-19 period. Although many industries bounced back from Covid-19 in 2022, cinema businesses have faced additional challenges caused by the pause in movie production on the back of Covid-19 restrictions, reducing major movie releases by about thirty percent, with revenue also being reduced by the same amount. Pile onto that the impact of the writers and actors strike in Hollywood and cost of living pressures affects both impacting on the discretionary spending of the public and the running cost of cinemas and it is not difficult to see why this industry finds it challenging to stay viable. “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 and, whilst we continue to trade, we urge your patience as we restructure the business,” Mr Dell said. The positive news is that Majestic is still trading and they urge people to go out and support their local cinemas at this time. Miss Alyssa McKay of Valla Beach, a regular customer of Majestic’s Nambucca Heads Cinemas, told News Of The Area, “It will be terrible if Majestic has to close its doors as we, and so many people we know, really love coming here to the movies and traveling to Sawtell or Coffs Harbour to see a film would certainly be difficult.” By Mick BIRTLES
