Ster-Kinekor Strikes a Chord: Fewer Screens Go Dark as Restructuring Saves Jobs
Image Source: Ster-Kinekor
Published by Everything ZA News
Johannesburg, South Africa – In a reprieve for movie fans and cinema employees alike, South Africa’s Ster-Kinekor, the nation’s largest cinema chain, has significantly reduced its planned job cuts and cinema closures following a successful restructuring process.
The company initially faced a daunting scenario, anticipating the retrenchment of over 220 employees – roughly a third of its workforce – and the shuttering of nine locations across Gauteng, KwaZulu-Natal, and the Western Cape. However, through extensive negotiations with landlords and distributors, Ster-Kinekor managed to achieve a far more positive outcome.
“We’ve closed down two cinemas,” said Ster-Kinekor CEO Mark Sardi, according to Business Day. “We initially thought about closing nine. Nine were marginal, and for those remaining, we are still having discussions with landlords and partners to see if there’s a different way of using what we have and the real estate.”
This shift reflects the company’s fruitful talks, which secured alternative uses for underperforming locations and implemented cost-cutting measures. The job cuts were also drastically reduced, impacting fewer than 60 employees, primarily at the head office.
Ster-Kinekor’s struggles stemmed from a confluence of challenges: a sluggish economy, persistent power outages (“load-shedding”), and a slowdown in Hollywood film releases due to labor strikes. These factors combined to dent cinema attendance and revenue.
Despite the difficulties, 14 of Ster-Kinekor’s 46 locations have maintained or even improved their performance year-over-year. The remaining sites require ongoing discussions to explore alternative uses and identify further cost-saving strategies.
With the restructuring complete, Ster-Kinekor seeks to stabilize its operations while charting a new course. The company’s focus will be on broadening its offerings and implementing innovative strategies to reignite audience interest in the big-screen experience. While the initial closure list included locations like Bayside (Western Cape), Boardwalk (KwaZulu-Natal), and Southgate (Gauteng), moviegoers can breathe a sigh of relief – for now, the silver screen remains alive and well in South Africa.
About The Author
