A “FAMOUS” Scottish cinema dating back to the 1950s has been placed into provisional liquidation with all eight staff made redundant.
The Covid-19 pandemic and rising costs have been blamed for the closure of the Oban Phoenix Cinema.
Blair Milne and David Meldrum of accountancy firm Azets, who have been appointed joint provisional liquidators, are asking interested parties to contact them “promptly, to maximise the chances of finding a buyer keen to reopen the famous venue”.
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They said: “The provisional liquidation has been caused by a marked decline in audience numbers and revenue stemming from the Covid pandemic, together with rising operating costs due to inflationary pressures.
“The cinema has ceased trading with immediate effect and unfortunately all eight staff have been made redundant. “
The statement added: “In 2012, following extensive fundraising and widespread celebrity and community support, the venue reopened as the Oban Phoenix Cinema, an independent community-owned cinema and registered charity offering a wide range of films, events and venue hire.”
The cinema has two screens with the larger featuring 148 seats and 3D projection facilities while the more “compact” screen has 22 seats.
Milne, restructuring and insolvency partner with Azets said: “Despite the extensive efforts of the board of trustees, many volunteers and supporters, the financial issues affecting Oban Phoenix Cinema caused unsustainable cash flow problems and as such provisional liquidation was the only option.”
He added: “We will market the property and assets for sale and try to find a buyer keen to continue operating a cinema on the site.
"We are hopeful that our urgent call for a buyer will appeal to a variety of interested parties including existing cinema operators, an entrepreneur keen to enter the sector or a larger business willing to invest in an important and valued community asset.
“We are asking interested parties to contact Martin McGrellis at Azets. We will also provide every possible support to the staff that have been made redundant including assistance with the submission of claims to the Redundancy Payments Office and accessing suitable employment support services.”
A spokesperson for The Oban Phoenix Cinema said: “It is with the deepest regret that we have had to close the doors of Oban Phoenix Cinema. We have tried to maintain the cinema for the benefit of the community.
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"However, we have been struggling with a massive decline in footfall alongside a rise in costs over the last few years. Unfortunately, numbers have declined even further during the last few months, and it is with great sadness that we have had to close the cinema as it had become insolvent.
"We would like to thank our current dedicated staff and all the community that have supported us with their patronage since 2012.”
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