150 jobs lost as cinema chain collapses into administration

A cinema chain with three venues in the South West has collapsed into administration.

Empire Cinemas has closed six of venues with immediate effect with the loss of 150 jobs.

And a question mark remains over the remaining seven cinemas as the administrators looks for potential buyers for the sites.

The move means Empire Cinemas’ Swindon venue has closed with immediate effect while the Bath and Cheltenham screens remain open.

The firm owed 14 cinemas with 129 screens. Plans to reopen the Sutton Coldfield location, which has been out of operation since November 2020, have also been abandoned.

Justin Ribbons, chief executive of Empire Cinemas, said: “As a consequence of Covid-19, we found ourselves in a position where we were mandated by Government to close down our cinema chain in its entirety for protracted periods in 2020 and 2021, leaving us with a high fixed cost base and no income.

“Cinema attendance levels have not yet returned to pre-Covid levels and the operating environment remains extremely challenging, with extraordinary levels of utility costs and rates, and persistently high levels of inflation leading to increased costs and a squeeze on discretionary spending by consumers which has inevitably created profitability issues for the group.

“The decision to appoint administrators has not been taken lightly but will give us the best chance to protect the viable parts of the business and secure as many jobs as possible.”

A notice sign stuck to the window of the cinema in Greenbridge Retail Park in Swindon explained how tickets purchased would be refunded.

The notice reads: ‘Refunds for advance tickets bought online and those purchased at the box office have been refunded immediately.

“Gift cards, tickets, e-codes, guest passes and readmission tickets remain valid for redemption at trading Empire Cinemas.”

Administrators BDO said the impact of the Covid pandemic and the cost of living crisis had “significantly affected the companies’ business”.

BDO said the cinemas employed a total of 437 staff across its various branches.