Yahoo News Empire Cinemas in U.K. Goes Into Administration, Closes Six Branches
The U.K.’s Empire Cinemas has gone into administration with six movie theaters shuttering immediately, Variety can confirm.
Empire operates 12 locations under the Empire brand and two Tivoli-branded cinemas in Bath and Cheltenham. The companies employ 437 people across England and Scotland. Around 150 staff — roughly a third of the company’s workforce — have been laid off as part of the administration process.
BDO LLP have been appointed as administrators handling the case.
So far, Empire cinemas have closed in Bishop’s Stortford, Catterick Garrison, Sunderland, Swindon, Walthamstow and Wigan. In addition, a site that was previously shuttered at Sutton Coldfield won’t reopen.
The remaining Empire movie theaters in Birmingham, Clydebank, High Wycombe, Ipswich and Sutton, and the two Tivoli sites in Bath and Cheltenham, are continuing to trade as the joint administrators look for a new buyer.
Tony Nygate, BDO business restructuring partner, said: “The well-publicized 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.”
BDO has confirmed that gift cards, ticket e-codes, guest passes and readmission tickets will continue to be valid at trading cinema sites. Meanwhile, advance ticket purchases at sites that have closed will be automatically refunded.
The exhibition sector in the U.K. has been hard-hit as it emerges from the pandemic. Regal Cinemas owner Cineworld revealed in late June that it will also go into administration. However, its application for administration will only apply to Cineworld Group plc and not any of the operating companies or subsidiaries in the rest of the group, which will continue operations as usual.
Elsewhere, cinema chain Vue International completed its recapitalization process earlier this year in order to gain access to £75 million ($92 million) of additional liquidity.
Deadline was first to report on Empire’s administration.
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