Ster-Kinekor enters business rescue as cinema sector reels under pandemic | Fin24

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Ster-Kinekor announced on Friday afternoon that its board of directors opted to commence with voluntary business rescue on Wednesday, following what has been a hellish year for cinemas in the midst of the Covid-19 pandemic and national lockdown. | Fin24

Ster-Kinekor announced that it opted to commence with a business rescue process this week, to return to profitability.

The process will be led by partner at EY South Africa Stefan Smyth while movie goers will still be able to attend screenings.Ster-Kinekor announced on Friday afternoon that its board of directors opted to commence with voluntary business rescue on Wednesday, following what has been a hellish year for cinemas in the midst of the Covid-19 pandemic and national lockdown.

The statement comes in the middle of the second wave of the pandemic in South Africa and level three of the national lockdown. Ongoing restrictions on public gatherings were always bound to hurt the bottom lines of cinemas. "As a result of the Covid-19 pandemic and the consequent economic lockdown instituted by the South African Government at the end of March 2020, all cinemas were required to shut down, and only permitted to reopen under strict conditions as from the end of August 2020," the statement said.

 

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