#U.K. Independent Cinema Chain Empire Enters Administration

U.K. independent theater chain Empire Cinemas has unveiled that it’s entering administration, citing slow levels of post-COVID audience recovery and increased costs due to inflation.

The company — which operates 14 locations (12 under the Empire brand, and two boutique cinemas under the Tivoli name) and 129 screens across England and Scotland — says it will sell off an already closed site at Sutton Coldfield, while six others will cease operating immediately, with job losses. Seven other sites will continue to operate as administrators seek a buyer.

“As a consequence of COVID-19, we found ourselves in a position where we were mandated by government to close down our cinema chain in its entirety for protracted periods in 2020 and 2021, leaving us with a high fixed cost base and no income,” said group CEO Justin Ribbons. “Cinema attendance levels have not yet returned to pre-COVID-19 levels and the operating environment remains extremely challenging, with extraordinary levels of utility costs and rates, and persistently high levels of inflation leading to increased costs and a squeeze on discretionary spending by consumers which has inevitably created profitability issues for the group. The decision to appoint administrators has not been taken lightly but will give us the best chance to protect the viable parts of the business and secure as many jobs as possible.”

Ribbons added: “It has been a difficult economic environment for any business to manage through without long-term damage and having exhausted all other available options for the business, we firmly believe that this process can be a platform to restructure the business and preserve as many of our cinemas and the maximum number of jobs as possible.”

Although recent tentpole releases such as The Flash and Indiana Jones and the Dial of Destiny have underperformed at the U.K. box office, Spider-Man: Across the Spider-Verse continues to do solid business. The decision by Empire also comes just three days before the release of Mission: Impossible — Dead Reckoning Part One, another major title with high box office expectations.