Ster-Kinekor will remain open despite being placed under business rescue

COVID-19 has had a dire impact on the entertainment industry, with lockdown regulations limiting the operation of movie houses.

Photo by Pixabay from Pexels

JOHANNESBURG - Movie outlet Ster-Kinekor on Friday said its doors would remain open despite being placed in business rescue.

COVID-19 has had a dire impact on the entertainment industry, with lockdown regulations limiting the operation of movie houses.

The company said the business rescue aimed to facilitate the rehabilitation of the company.

It said the continued lack of content for the next four to five months meant that the business was heading for further operational and cash flow challenges.

Ster-Kinekor acting CEO Motheo Matsau, said, “The board of Ster-Kinekor is of the belief that the safe harbour that business rescue provides in terms of a legal monitorium on our debit will assist both business rescue practitioners and our team to return Ster-Kinekor to profitability once our situation normalises.”

In a statement on Friday evening, the company said up until February 2020, Ster-Kinekor welcomed millions of movie goers every year to their 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.

"Since then, the company has been operating under various forms of restriction, including curfews and mandatory limits to the number of guests per auditorium,” the statement read.

Matsau added: “For our customers, it is important to note that our cinemas remain open for business. All cinemas have instituted strict COVID-19 protocols, which mean temperature checks and hand sanitising on arrival and inside the auditoria and mask wearing as appropriate. Every two seats are kept vacant for social distancing.”

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