Australian cinema operator Majestic Cinemas has gone into voluntary administration in an attempt to stay afloat in the post-pandemic environment.
The chain has nine locations across regional New South Wales and Queensland, including the Ritz in Port Macquarie and other theatres in Nambour, Inverell, Nambucca, Rose Point, Wynnum, Kempsey, Singleton, and Nelson Bay.
The business appointed Terry Grant van der Velde and Terrence Rose of SV Partners as administrators on Wednesday, but CEO Kieren Dell is optimistic the chain will survive.
“We’re feeling pretty good,” he told NBN News.
“This process of administration is about restructuring the business, making it sustainable going forward.”
The cinema industry was hit hard when people were forced to stay at home during the COVID-19 pandemic, seeing moviegoers increasingly turn to streaming platforms.
Despite the success of blockbusters like Barbie and Oppenheimer, last year proved particularly difficult as the months-long actors and writers strikes led to fewer releases, while the cost of living crisis made it more difficult for households to afford a trip to the cinema.
Despite this, Dell insists his business will remain viable.
“The cinema industry is still a strong industry, we just need to get past some of these events of the last four years,” he said.
9news.com.au has contacted the administrators for comment.
