Cinema chain collapses into administration with 6 locations closed immediately
Empire Cinemas has collapsed into administration with six of its UK locations shut down immediately. The closures will result in the loss of 150 jobs and will be a blow for film lovers across the country.
The cinemas that have been closed with immediate effect from today are:
- Bishop's Stortford
- Catterick Garrison
- Sunderland
- Swindon
- Walthamstow
- Wigan
The Sutton Coldfield cinema, which has been shut since November 2020, will now also not reopen.
Empire Cinemas group has 14 cinemas with 129 screens and the rest of its sites will remain open, with the administrators hoping to find a buyer.
The cinemas that will stay open are:
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- Birmingham
- Clydebank
- High Wycombe
- Ipswich
- Sutton
The two Tivoli cinemas in Bath and Cheltenham which are owned by the group will also stay open.
The group employs 437 staff across England and Scotland.
Customers with gift cards, ticket e-codes, guest passes and readmission tickets will be able to use these at one of the remaining Empire Cinemas sites.
If you purchased an advance ticket at a site which has closed, this will be automatically refunded.
Tony Nygate, John Strowger and Danny Dartnaill at BDO have today been appointed as joint administrators.
According to the Swindon Advertiser, a notice has been stuck to the window of the cinema in the Greenbridge Retail Park, explaining the situation.
It 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 at Birmingham, Clydebank, High Wycombe, Ipswich and Sutton, but refunds are not available.
"Customers can email [email protected] for assistance."
Stella Creasy, Labour and Co-operative MP for Walthamstow, also commented on the closure in her constituency.
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Tweeting earlier today, she said: "Shocked that the @EmpireCinemas has been closed down with immediate effect - was there on Monday.
"Please can someone from the administrators urgently provide an update on what next for those who worked there and for the site?"
Tony Nygate, BDO business restructuring partner, said: "The well-publicised challenges for the leisure sector from the impact of COVID-19, rising inflation and the cost-of-living crisis have significantly affected the Companies’ business.
"The remaining open sites are continuing to trade while we explore the sale of as much of the business as possible."
Justin Ribbons, Empire Cinemas CEO, 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-19 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.”
It comes after rival Cineworld announced plans to file for administration this month.
This will see shares in the firm suspended.
However, the cinema chain claimed the move will not impact its British operations for the holding company.
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