- Empire Cinema chain closes six theaters, resulting in job losses
- Eight out of fourteen cinemas remain open under Empire Cinema and Tivoli brands
- Financial impact of COVID-19, inflation, and cost of living crisis cited as reasons for closures
Cinema closures are attributed to the financial impact of the COVID-19 pandemic, rising inflation, and the expense of living crisis.
The administration of the Empire Cinema chain has resulted in the loss of 150 employees and the closure of six theatres.
Under the Empire Cinema and Tivoli identities, eight of the group’s fourteen cinemas will remain open.
However, the following locations have been closed immediately:
- Catterick Garrison
- Bishop’s Stortford
- Sunderland
- Swindon
- Walthamstow
- Wigan
Administrators from the accountancy firm BDO have announced that the already-closed Sutton Coldfield cinema will not reopen.
Tickets purchased in advance for the closed theatres will be refunded, according to the administrators.
The open cinemas will continue to accept gift cards and guest permits.
Sites that will remain operational are located in:
- Birmingham
- Clydebank
- High Wycombe
- Ipswich
- Sutton
Administrators claim they are looking for a buyer and have blamed the closures on the financial effects of the COVID-19 pandemic, inflation, and the cost of living crisis.
Assigned as administrator, a restructuring partner at BDO stated, “The well-publicized challenges for the leisure sector from the impact of COVID-19, rising inflation, and the cost of living crisis have significantly impacted the company’s business.
During the years of the pandemic, when lockdowns prevented normal trading, businesses accumulated substantial debt.
After post-COVID supply problems drove up costs and the invasion of Ukraine caused record energy prices, overall prices have also risen.
The latest inflation rate of 8.7% was persistently high.
Empire Cinema Group is also struggling movie theatre chain.
This month, Cineworld, the second-largest cinema operator in the world, will emerge from bankruptcy.
The British chain, which is listed on the London Stock Exchange, filed for bankruptcy in the United States last year as it emerged from the pandemic burdened by debt and low viewership.
Throughout the insolvency arrangement, Cineworld’s theatres continued to operate normally. Last month, Cineworld abandoned plans to sell its businesses in the United Kingdom, the United States, and Ireland, but efforts to auction operations elsewhere continue.
In England and Scotland, the Empire Cinema Group employs 437 individuals.
The 150 employees affected by job cuts will be laid off.
