Future of Palmerston’s CMAX Cinemas in further doubt

THE company operating Palmerston’s CMAX Cinemas is facing court action from the Australian Taxation Office, plunging the future of the cinema into further jeopardy

The CMAX cinemas in Palmerston are still closed until further notice. Picture: Justin Kennedy

THE company operating Palmerston’s CMAX Cinemas is facing court action from the Australian Taxation Office, plunging the future of the cinema into further jeopardy.

After months of uncertainty around the cinema, Republic Theatres Darwin Pty Ltd which runs the Palmerston CMAX, is now facing court action from the ATO to wind up business operations.

An ASIC notice was published on the body’s website on Friday detailing a January 23 hearing to wind up the company scheduled to be held in Adelaide.

Last week the reins of the Palmerston cinema were handed over to another cinema company, Trak Cinema in Adelaide.

Until then, Trak Cinema had been overseeing operations at Palmerston CMAX during its indefinite closure.

Palmerston CMAX shut its doors on December 22 without warning before the school holiday rush.

• FUTURE of Palmerston’s CMAX cinema remains uncertain

Last week the NT News reported a spokesman from Trak Cinema saying the future was still uncertain as to whether or if the cinema would reopen.

Now the owner of Palmerston CMAX is confirmed to be in the ATO’s crosshairs, the future looks grim for the cinema.

While the cinema could still be saved by new owners, the long-term viability of a second cinema in Palmerston looks all but terminal.

It is understood Palmerston CMAX, a 400-seat cinema, was driven to the financial brink when Event Cinemas, one of Australia’s biggest cinema chains, moved in around the corner at Gateway Shopping Centre in September 2017.

Adelaide news site InDaily reported the Palmerston CMAX was no longer viable because of “competition”.

Palmerston CMAX and Trak Cinema were contacted for comment.