Ster-Kinekor Theatres has walked away from voluntary business rescue that the company entered into in January 2021 after it was hit hard by Covid-19 regulations that impacted mainly the sporting, entertainment, and tourism and hospitality sectors.
Motheo Matsau, deputy CEO at Ster-Kinekor Theatres, said the Black Panther: Wakanda Forever has achieved R16.6-million at the box office across its 230 cinema, including Ster-Kinekor’s IMAX and D-BOX cinemas in southern Africa.
“We went through a period that not many businesses would survive, but because of the dedicated people involved in and with this organisation, we managed to pull through the difficulties,” said Matsau.
In the long list of Covid-19 regulations during hard lockdowns in 2020 and 2021, cinemas shut doors to customers in an attempt to restrict the spread of the global pandemic.
Despite owning 60% to 65% of the movie theatre market, Ster-Kinekor struggled during the peak of the pandemic.
The business rescue plan included a R250-million capital injection submitted by Blantyre Capital and Greenpoint Capital in December 2021. The plan required approval by 75% of the creditors and shareholders.
By March 2022, almost all the creditors and shareholders voted in favour of the business rescue plan and sale and for Blantyre Capital and Greenpoint Capital to be the new owners.
Matsau said the company is delighted with the positive outcome reached following the business rescue process.
“It is a great relief knowing that the business will continue with sound financial backing. The business was hit hard by the pandemic and subsequent various lockdown levels when we could not trade at all.
“This impacted our staff, creditors and of course the landlords of the malls that house our cinema complexes,” said Matsau.
He added that cinema is central to popular culture and although its obituary had been written many times before, the company believes it is here to stay.
“Attendance figures in the past few months have shown an upward trajectory that reflects the continued appetite by South Africans to return to cinemas.
“There have been some challenges with regards to global film production and delays with big title release dates, but a slate of strong film content is making it back to our screens in time for the upcoming holiday season.”
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