Ster-Kinekor CEO Mark Sardi remains optimistic about the future of cinema in South Africa despite challenges such as the rise of streaming services, load-shedding, and the impact of the Hollywood actors’ strike.
Sardi highlighted how load-shedding has affected Ster-Kinekor’s operations and discouraged moviegoers from visiting theaters. He noted that the intermittent power cuts had influenced consumer behaviour, especially for those who have grown accustomed to streaming content at home.
Regarding the Hollywood actors’ strike, Sardi explained that it has profoundly impacted Ster-Kinekor’s movie offerings, resulting in a significant content gap. However, we are not standing still. We are actively working to address this gap, exploring new avenues and partnerships to bring diverse and engaging content to our audiences. This situation has persisted for several months, but we are confident in our ability to navigate these challenges and emerge stronger.
Addressing the company’s recent business rescue proceedings, Sardi acknowledged the need for a thorough evaluation of certain aspects of the business, particularly related to cost structures and head office expenses.
While Ster-Kinekor has successfully exited business rescue, it has strategically announced plans to downsize its workforce and close several cinemas across South Africa. These decisions are not a sign of retreat but a proactive response to the challenging economic climate, persistent load-shedding, and the lingering effects of the Hollywood strikes. They demonstrate our unwavering commitment to adapt and thrive in the face of adversity, ensuring the long-term sustainability of Ster-Kinekor.
On February 13, 2024, Ster-Kinekor issued section 189(3) notices to affected staff, outlining its intention to retrench 236 employees out of its current workforce of 728. The affected positions span various departments, including the CEO’s office, marketing, sales, human capital, business operations, content, finance, head office, regional operations, and information technology. This comprehensive restructuring, while necessary for the long-term sustainability of Ster-Kinekor Theatres, is a decision that has not been taken lightly. We understand the impact this will have on our valued employees and are committed to providing support during this transition.
Additionally, the company plans to close up to nine cinemas in different provinces, including iconic locations such as Sterland in Gauteng and Mimosa in the Free State. It is also considering closing eight more cinemas in other regions.
Despite these challenges, Sardi expressed confidence in the resilience of the cinema industry and emphasized the ongoing efforts to ensure the survival and sustainability of Ster-Kinekor Theatres.
