Regional movie theatre chain Majestic Cinemas enters voluntary administration

Majestic Cinemas, which operates nine movie theatres in regional NSW and Queensland, has entered voluntary administration blaming the pandemic, the cost-of-living crisis, natural disasters and even the Hollywood writers' strike for its predicament.

The chain's cinemas in regional centres of Nambour, Port Macquarie, Inverell, Nambucca, Wynnum, Kempsey, Singleton, Sawtell and Nelson Bay remain open showing films while management waits on a possible restructure so the company can remain viable.

Explaining the predicament of the chain, Majestic Cinemas founder and Chief Executive, Kieren Dell told News Ltd “we have had four years of pressure on the cinema industry from bushfires to Covid, to the writers strikes.

“No movies were made during Covid, that proved difficult for cinemas, and just as we were getting back on our feet the Hollywood actors decided to go on strike and that again stopped movie production.”

Noting that his cinemas have had only 70% of movie releases over the last couple of years and about 70% of normal revenue, Dell added “that’s what has caused the problems.

“It is about the consistency of movies. Barbie and Oppenheimer were great but we didn’t have much after that in the second half of the year.”

Dell started the business 21 years ago after buying the Nambucca Heads cinema despite having no experience in the industry.

He recalled “I learnt from scratch and I believe it was, and it is, viable.”

Dell said he expected another six to 12 tough months ahead for the cinema industry because of the impacts of the writers strikes but believes the business will survive, adding “for us this process is about restructure, reducing the debt level overhang and recalibrating our rent which was set at pre Covid levels.

“Cinema has survived, TV, VHS, DVD and streaming and it continues to adapt.

“It is the most popular cultural experience people have and in regional towns it is a social entertainment hub.”

In the beachside town of Sawtell on the NSW Mid North Coast, locals have fought to keep a historic Art Deco cinema open through floods and recessions since the 1940s.

It closed permanently in 2012 after being struck by flood damage in 2009.

After a group of community investors, including film critic David Stratton, joined forces to reopen the theatre, Majestic took on the management of the cinema.

Former Coffs Harbour Mayor Denise Knight said the cinema still had a profound effect on the local community, told the ABC “it's really the heartbeat of Sawtell. It's incredibly special.

"As you walk down the street on a Friday Night, you can feel the warmth of the village radiating out of the doors."

The company entered voluntary administration on 31st January but said all its cinemas were operating as normal.

A message on the group’s website informed patrons it was undergoing a restructuring process.

It advised:

“Majestic Cinemas advises that it is looking to restructure its business by appointing Voluntary Administrators effective 31 January 2024.

“At this stage, all Majestic Cinemas remain open and selling tickets to customers.

“Movie Club Members will be able to continue obtaining their membership benefits.”

Lower image shows Majestic Cinemas' Port Macquarie theatre. Credit: Shutterstock.