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In a statement late Friday, the company said the business bailout was aimed at facilitating the rehabilitation of the company.
Image: Ster-Kinekor Facebook page.
JOHANNESBURG – The Ster-Kinekor film medium has been placed under voluntary corporate bailout.
In a statement late Friday, the company said the business bailout was aimed at facilitating the rehabilitation of the company.
He said that until February 2020, Ster-Kinekor received millions of viewers each year in its cinemas.
But due to various factors triggered by the COVID-19 pandemic, Ster-Kinekor has been operating at a loss as the company continues to incur costs.
“As a result of the COVID-19 pandemic and the consequent economic blockade instituted by the South African government at the end of March 2020, all cinemas had to close and were only allowed to reopen under strict conditions from the end of August 2020.
“Since then, the company has been operating under various forms of restrictions, including curfews and mandatory limits on the number of guests per audience,” the statement read.
He also said that the continued lack of content over the next four to five months meant the company was heading for new cash flow and operational challenges.
“The board is of the opinion that the safe harbor offered by the business bailout, in terms of providing a legal moratorium, will help the company return to profitability, once operating restrictions have been lifted, when international film distributions begin to flow again “.
However, the cinemas will remain open to the public.
Acting CEO Motheo Matsau said: “For our customers, it is important to note that our cinemas remain open to the public. All cinemas have instituted strict COVID-19 protocols, which means temperature controls and hand sanitization on arrival and within the auditorium and the use of masks as appropriate. Every two seats are left vacant due to social distancing ”.
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