Inverell locals can continue to buy their popcorn and choc tops while they watch films on the big screen from the local cinema, after it was given a lifeline, preventing closure of the beloved local venue.
Majestic Cinemas has been given a new name, now called Regional Cinemas Australia, and has now lifted its voluntary administration status after administrators flagged the company on February 1st of this year.
According to Majestic Cinemas, the company’s voluntary administration was a result of the rising cost of living as well as both the US Writer’s strike and the COVID pandemic.
The announcement comes after two years of solid releases including three of the top-grossing movies of all time in Australia: Barbie, Top Gun and Avatar: The Way of Water.
Regional Cinemas Australia CEO Kieran Dell said the success of the historical biopic Oppenheimer and the cultural phenomenon Barbie helped bring audiences back to the cinema in 2023.
“Barbenheimer was really important because it actually changed the conversation,” he said.
“People started to talk about cinema again, and people started to come back in droves,” he said.
However, Mr Dell said factors such as the recent Writers Guild of America strikes caused Hollywood’s film release schedule to slow to a halt in late 2023.
“It was the final straw,” he said.
“The problem was, because of the actors and writers going on strike, after Barbenheimer, we didn’t see as many movies released in the second half of last year.”
“Because movies weren’t made during the pandemic, we didn’t have enough movies to show once COVID was over,” Mr Dell said.
Previously, Majestic managed nine cinemas across Queensland and New South Wales, with Wynnum, Singleton and Nelson Bay closing its doors within a week of the company falling into voluntary administration, with Nambour’s cinema on the Sunshine Coast closing its doors at the end of April.
Administrators said it is clear that a new operating model was required to align the business to the future sustainability of the movie industry.
However, with the now new company branding and a new business model, the remaining 5 cinemas including Inverell as well as Kempsey, Port Macquarie, Nambucca Heads and the 80 year old historic cinema at Sawtell, were saved from the chopping block.
Mr Dell assured customers that along with a few changes, it’s business as normal.
”Aside from the local cinema being renamed Inverell Cinema and a slight tweak to its website, customers will still be able to enjoy the cinema experience they’ve always come to know,” Mr Dell said.
The company is tipped to come out of administration next week.
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