Ster-Kinekor closes cinemas in major South African mall

Ster-Kinekor has closed its cinema complex in the Gateway Theatre of Shopping Mall in Durban. Its last trading day was 8 May 2025.

This is the second quiet closure by the cinema chain that moviegoers reported.

Earlier this year, Ster-Kinekor closed its cinemaplex in Bedford Square, Bedfordview, and Nu Metro took over operations.

While Ster-Kinekor exited the mall, Gateway Theatre of Shopping’s management provided a statement confirming that it will continue to offer cinemas.

“Gateway Theatre of Shopping can confirm that Ster-Kinekor has officially closed at the centre,” they said.

“A new cinema operator will be taking over the space, and further details will be shared on our social media platforms in due course.”

Subsequently, Nu Metro confirmed to MyBroadband that it will be opening cinemas at Gateway. It declined to comment on plans for future takeovers.

Ster-Kinekor told MyBroadband that it did not initiate the decision to close the site, raising questions about whether there was a dispute over rent with Gateway management.

“We part ways with Gateway on good terms and with mutual respect,” a Ster-Kinekor spokesperson told MyBroadband.

“We are proud to have been part of the centre’s entertainment offering and are grateful for the positive relationship we’ve enjoyed over the years.”

Ster-Kinekor thanked the customers who supported its Gateway cinema.

“Your continued enthusiasm for the big screen experience inspires us to keep delivering the latest blockbusters and unforgettable cinematic moments at our theatres across the country,” it said.

Ster-Kinekor did not answer a question about which other sites are earmarked for potential closure and takeover by Nu Metro. Instead, it said it was looking at launching several new locations.

“Ster-Kinekor remains focused on future growth and continues to invest strategically in areas that promise long-term value,” it said.

“We are currently in advanced discussions around three proposed new cinema locations, all of which are expected to surpass the historical attendance levels previously recorded at Gateway.”

Ster-Kinekor quietly shuttered two cinemaplexes after it trumpeted last year that it avoided closing seven locations.

The company announced plans in April 2024 to lay off staff and close up to nine cinemas in South Africa’s most populous provinces.

It said factors like a challenging economic environment, load-shedding, and the impact of the Hollywood Actors’ strike had resulted in low attendance at its theatres.

Ster-Kinekor added that the Hollywood strikes meant promising titles scheduled for release in 2023 and 2024 were moved out to 2025.

“As these are forces largely out of the business’s control and the financial impact is likely to endure for some time, Ster-Kinekor has had to review its cost structure to ensure the continued survival and sustainability of the business,” it stated.

Ster-Kinekor closures, lay-offs

On 13 February 2024, it served staff with section 189 notices, with plans to retrench 236 of Ster-Kinekor’s 728 employees.

Positions in the firing line included those in the CEO’s office, marketing, sales, human resources, business operations, content, finance, head office, regional operations, and IT.

Ster-Kinekor also said it could shut down up to nine of its cinema complexes nationwide.

These were mainly its cheaper theatres, where tickets were priced between R65 and R75. This placed cinemas like Bayside in the Western Cape in the firing line.

It also planned to close sites like Cedar Square, Maponya, Matlosana, Southgate, and the iconic Sterland Theatre in Gauteng.

The Boardwalk and Shelly Beach cinemas in KwaZulu-Natal and the Mimosa Theatre in the Free State also faced closure.

Ster-Kinekor said the closures would happen gradually over six months.

However, good news came around two months later when Ster-Kinekor announced that it had completed its restructuring at the end of May 2024 and retrenched far fewer staff than initially planned.

It also reduced the number of cinemas set for closure from nine locations to just two.

Ster-Kinekor CEO Mark Sardi said the move had helped reduce the company’s costs and headcount by around 20% to 25%.

“We initially assessed that 236 jobs might be affected. However, we ended up retrenching just 52 employees, and these were largely head-office related,” said Sardi.

He added that Ster-Kinekor will always try to deploy staff to other cinemas when sites close.

Sardi said the company was in talks with landlords and partners at some cinemas marked for closure to consider alternative options.

“Initially, Ster-Kinekor was considering closing nine of its cinema sites, but at this stage, only two sites have been impacted — Boardwalk in Richard’s Bay and the Greenstone Mall,” he said.

“Of the remaining sites identified, the company is currently in discussions with landlords and partners to consider different entertainment and education strategies within the cinema space.”