UK cinema chain to close down 6 locations after plunging into administration with more at risk – is one near you?
A UK cinema chain has fallen into administration and will close multiple sites immediately.
Empire Cinemas operates 14 locations across the country with 129 screens.
A total of six sites will close with immediate effect, including two under the Tivoli brand.
The company employs around 430 people across the country and the closures will make 150 roles redundant.
Seven of the 14 cinemas will remain open for the time being, as administrators look for a buyer.
Company bosses said the chain has struggled to bounce back since the pandemic.
Any film fans with gift cards or ticket e-codes can still use them at any of the cinemas that are still operating.
Tickets that have been be bought for sites that are continuing to trade will still remain valid.
Customers with tickets for any of the sites which have now closed should have already received a refund.
The cinemas closing immediately are: Bishop’s Stortford, Catterick Garrison, Sunderland, Swindon, Walthamstow and Wigan.
The Sutton Coldfield cinema shut in November 2020, and will now not reopen.
Screens remaining open for now are: Birmingham, Clydebank, High Wycombe, Ipswich, Sutton, Bath and Cheltenham.
Justin Ribbons, the boss of Empire Cinemas Group, told Deadline, which first reported the closures: “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.”
Administrators, the BDO group, said they are looking for a buyer which could save the locations which remain open.
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.”
Administration is when all control of a company is passed on to an appointed insolvency practitioner.
It doesn’t necessarily mean the end of the business.
Instead, administrators will try to help a company find ways to repay debts or solve its cashflow problems.
Administration can last anywhere from a few weeks to up to a year or more.
But if the administration process can’t rescue the company or find a new owner, this usually leads to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
It comes after huge cinema chain Cineworld revealed it expects to come out of bankruptcy protection in July after receiving backing from lenders.
The chain filed for Chapter 11 bankruptcy in the US last year due to giant debts and low footfall to its venues.
Businesses and retailers have been hit hard in the wake of the pandemic, and the immersion of streaming platforms has likely led to less people heading to the big screen.
Below we reveal your rights in redundancy.
Your rights in redundancy
Companies can choose to cut their workforce and employees should understand their rights.
You are entitled to statutory redundancy pay, but only if you have worked at your job for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
But it’s capped at 20 years and the max redundancy pay you can get is currently £16,320.
Some companies may offer to pay more than the statutory amount. This will usually be in your contract.
Plus, you are still entitled to any pay you are owed for untaken holiday days at the end of your notice period.
The government has a calculator on its website to help you work out how much you are owed.
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