Ster-Kinekor’s CEO believes they still have a future in SA
Ster-Kinekor CEO Mark Sardi believes cinema has a bright future in South Africa despite load shedding and several other obstacles.
Despite the increase in popularity of streaming services, load shedding and the effect of the Hollywood actor’s strike, Ster-Kinekor CEO Mark Sardi believes cinema has a bright future in South Africa.
‘FUTURE IS LOOKING A BIT BRIGHTER’
According to MyBroadband, in an interview with 702, Sardi explained that load shedding impacts Ster-Kinerkor’s operations and can also disincentivise South Africans from visiting movie theatres.
“Last year, despite miraculous periods of no load shedding, we probably had the most intense period of load shedding between April and September of last year, and that impacts consumer behaviour,” said Sardi.
“If you got onto the drug of watching a streaming service at home, and you’re worried about travelling through traffic lights that don’t work, to a cinema that may, or may not be on, it does become a bit of a disincentive to go,” he added
“I think with the future looking a bit brighter (no pun intended) I think there is still a lot of work that we can do, but there’s still a very bright future for cinema.”
LAY OFF STAFF
Ster-Kinekor announced plans to lay off nearly a third of its 728 employees less than two years after the company exited business rescue.
In addition, it plans to close as many as nine of its cinemas, predominantly in Gauteng, as well as KwaZulu-Natal, the Western Cape and Free State.
According to MyBroadband, Ster-Kinekor served staff with a section 189(3) notice on 13 February 2024, beginning the retrenchment process of 236 of its employees.
The affected positions are across the board and include the CEO’s office, marketing, sales, human capital, information technology, business operations, content, finance, head office, regional operations and cinemas.
The nine cinemas earmarked for closure are:
- Bayside (Western Cape)
- Boardwalk (KwaZulu-Natal)
- Shelly Beach (KwaZulu-Natal)
- Mimosa (Free State)
- Cedar Square (Gauteng)
- Maponya (Gauteng)
- Matlosana (Gauteng)
- Southgate (Gauteng)
- Sterland (Gauteng)
These closures will take place over the course of the next six months.
Furthermore, Ster-Kinekor is also reviewing plans to close another eight cinemas around the country, namely Secunda, Wonderpark, Bedfordview, Cradlestone, Mooi River, N1 City, Rosebank Nouveau and Rustenburg.
Ster-Kinekor was forced to enter business rescue in January 2021 following the impact of the Covid-19 pandemic and associated lockdowns.
It exited from business rescue in November 2022, following an acquisition that secured a cash infusion of R250 million from UK-based Blantyre Capital and South Africa’s Greenpoint Capital.
WHEN LAST DID YOU WATCH A MOVIE AT STER-KINEKOR?
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