'Difficult few years': Majestic Cinemas enters voluntary administration

CEO of Majestic Cinemas Kieren Dell told Australian Community Media that the business and cinemas will continue to operate as normal and will remain open. He said the decision to appoint administrators is a "restructuring of the business behind the scenes".

"It's a difficult process for us to go through after a difficult few years," he said.

Mr Dell said reduced box office numbers due to the impact of COVID-19 and the US strikes on production and release schedules resulted in the decision to appoint administrators.

"We thought that in 2023 business would return to normal, but the strikes mean not as many movies are being released," he said.

"The timing of the strikes in Hollywood by the writers and actors in the second half of the year was unfortunate and had a significant impact on the release of major movies.

"It will take the industry another six to 12 months to get back on its feet."

The decision comes after 'Barbenheimer' saw crowds in their hundreds return to the cinemas last year, with two major blockbuster movies released on the same day.

Majestic Cinemas Pty Limited has appointed Terry Grant van der Velde and Terrence John Rose of SV Partners as joint administrators of the business.

Majestic Cinemas has nine theatres located in Nambour, Port Macquarie, Inverell, Nambucca, Wynnum, Kempsey, Singleton, Sawtell, and Nelson Bay.

Mr Dell said he plans for the cinemas to continue operating in these locations for "a long time".

"We understand how important these venues are to our local communities and remain committed to providing the same great entertainment and service to as many of the towns and areas we currently operate in as possible," he said.

"We thank our loyal customers for their ongoing support as we work through this process."

The first meeting with creditors will be on February 12, 2024.