Wynnum, Nambour movie theatre operators Majestic Cinemas in voluntary administration
The founder of a chain of nine independent cinemas hopes the show can still go on despite administrators being appointed, just three years after opening an $8 million Wynnum theatre.
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The founder of a chain of nine independent cinemas hopes the show can still go on despite administrators being appointed just three years after opening an $8 million theatre in Wynnum, the first in the suburb in 50 years.
Majestic Cinemas Pty Limited has entered into voluntary administration, with SV Partners appointed in a last-ditch bid to help it restructure.
All nine of its cinemas in Wynnum, Nambour and the NSW towns of Nambucca Heads, Singleton, Inverell, Sawtell, Kempsey and Nelson Bay were affected.
Founder and CEO Kieren Dell stressed that the theatres were still trading and asked loyal customers to turn up and support them in their toughest hour.
He said gift cards and memberships would be honoured.
Mr Dell partly blamed the Hollywood strike and Covid for the industry’s woes, describing last year as “pretty dire’’.
He said 2023 was tougher even than lockdown, despite a boost from Barbie and Oppenheimer, because government, landlord and bank support had stopped by then.
The six-theatre, $8 million Wynnum cinema building opened in March, 2021, ending a 50-year wait for a movie house in the bayside suburb.
“As you would be aware, the last four years have been difficult for many businesses and cinemas have suffered particularly with natural disasters, a pandemic, Hollywood strikes and the consequent lack of consistent major movie releases, on top of rising business costs and debt levels,’’ Mr Dell posted.
“Majestic Cinemas has made the difficult decision to appoint voluntary administrators in order to restructure its business for the future.
“Majestic Cinemas will remain open for business at this point as we work through the process and remains confident it can emerge stronger.
“If you are a member of our movie club, you will continue to receive the benefits of your membership.
“There will be a grace period for a time for recently-expired memberships. Special conditions apply to gift cards.
“We recognise the importance of our venues to many in their local communities and remain committed to doing our best to continue operating our cinemas into the future.
“We thank you for your support and look forward to seeing you at the movies.’’
The company’s website said gift card holders, who would usually be considered unsecured creditors, could redeem unused gift cards through matched cash spending.
“For example, if you make a purchase for $20 at the cinema, you can use your gift card for $10 and pay the other $10 by cash or card,” the website stated.
A creditors’ meeting was scheduled for February 12.
SV Partners confirmed in a statement that Terry van der Velde and Terry Rose had been appointed as voluntary administrators.
“Majestic Cinemas has initiated a restructuring process by appointing administrators, aiming to secure a promising future for the business amid challenges,’’ the statement said.
“It appreciates the ongoing support from its loyal customers and encourages community support to navigate this period.
“SV Partners is working closely with Majestic Cinemas as the business undergoes restructuring.
“Customers can continue to support the business by visiting the cinemas, with session times and details available on the company’s website majesticcinemas.com.au
“FAQs have also been published online.
“Cinemas remain open and operating as normal and patrons are encouraged to continue to support the business as it trades through the administration process.’’
Justin Ham, whose development company Berrima Develop Pty Ltd built the complex, said it was sad news for Wynnum residents.
“We have been always supportive of Majestic through their challenges in their industry and we hope they find a way forward,’’ he said.
“The Wynnum CBD area needs more population to sustain small and medium business operators with the current economic climate.’’
Mr Dell said Majestic was “committed to all the communities we serve and look forward to being able to continue to serve them wherever possible’’.
Majestic started in 2002 as a single theatre in Nambucca Heads.
Mr Dell is also the vice president of Independent Cinemas Australia.
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