Future of Showcase Cinemas is uncertain – because of Covid-19
THE owner of Showcase Cinemas says its future success “cannot be determined” because of the Covid-19 pandemic.
A statement released by National Amusements gives a glimpse into how the pandemic continues to have an effect on the business, with reduced capacities and no major film releases.
The firm’s full accounts for the year to January 2, 2020, showed a loss after tax of £2.2 million, compared to a profit of almost £2.5 million in 2019. Audience figures also fell three per cent.
The accounts reporting period ended just a few months before the country entered lockdown in a bid to curb the spread of Covid-19.
But looking forward, a statement signed off by the board said: “During the first half of 2020, the Covid-19 pandemic has caused business disruption through mandated and voluntary closings of all the company’s theatres.
“The company’s operating results were negatively impacted and the related financial impact and duration cannot be reasonably estimated at this time.
“In the third quarter of 2020, the company has resumed operations under reduced capacity restrictions, with no new film products being released to movie exhibitors until the end of the third quarter of 2020 and enhanced safety protocols have been implemented.
“There is uncertainty in consumer demand as the business begins to reopen.”
In response to the pandemic, the vast majority of Showcase employees were furloughed and there was a temporary reduction in pay for non-furloughed staff. Work also took place with landlords to delay or reduce payments.