Sunderland's Empire Cinema closes with immediate effect as chain collapses

Sunderland's Empire Cinema has closed with immediate effect following the collapse of its parent company.

The Empire chain has fallen into administration today, Friday, July 7, after suffering during the pandemic and seeing dwindling numbers of customers.

Sunderland is one of six venues to be closed with immediate effect, alongside Bishop’s Stortford, Catterick Garrison, Swindon, Walthamstow and Wigan.

Around 150 jobs are being made redundant, according to joint administrators at BDO

The chain will keep its remaining seven sites open while it seeks a buyer for the business.

A statement on the company website reads: "Tony Nygate, John Strowger Danny Dartnaill were appointed Joint Administrators of Empire Cinemas Limited on 7 July 2023 and it is with regret that we announce the closure of Empire Cinemas Sunderland with immediate effect."

The firm has blamed the impact of lockdown: "We were mandated by Government to close down our cinema chain in its entirety for protracted periods in 2020 and 2021 and this left us with a high fixed cost base and no income.

"Cinema attendance levels have not yet returned to pre-COVID-19 levels and the operating environment remains extremely challenging.

"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

"Refunds for tickets bought online and those purchased at the Box Office using a Debit/Credit/Gift Card will be REFUNDED automatically

"We are extremely grateful for your support over the years"

It is signed by chief executive officer Justin Ribbons.

BDO business restructuring partner Tony Nygate added: "The well-publicised challenges for the leisure sector from the impact of COVID-19, rising inflation and the cost-of-living crisis have significantly affected the Companies’ business.

"The remaining open sites are continuing to trade while we explore the sale of as much of the business as possible."

City Lib Dem leader Coun Paul Edgeworth said the closure was 'devastating news for those who worked for Empire Cinema and really bad news for Sunderland and our city centre economy'.

"If the administrators can’t find a buyer to take over the existing cinema site on Lambton Street then, given the council now owns the building, city bosses need to do everything they can to work with other operators to bring a new cinema chain to Sunderland," he added.

Labour group leader Coun Graeme Miller promised the authority would work hard to find a new operator for the venue: "Sunderland residents, quite rightly, want the city to have its own cinema, so this is obviously a blow for the people who worked at Empire as well as the residents who used it and the surrounding businesses that have been boosted by it," he said.

"Cinemas across the country have struggled to recover from the impact of the pandemic, and Sunderland is one of a number of venues affected by today’s news.

"There can be no doubt about the level of ambition of the Labour group, and where we face setbacks such as this, we quickly and proactively seek to resolve them.

"The council is already actively working to ensure that we seek out opportunities for the building that align with a wider strategy to regenerate Sunniside and that cinema provision is delivered for residents in the heart of the city."

A city council spokesperson added: "We are aware of the situation with Empire Cinemas which is a real blow for the people who work there, as well as the city at large. We expect contact from the administrators soon. 

"The industry as a whole has struggled to recover since the pandemic and cinemas across the country are closing their doors as a result. 

"We firmly believe that Sunderland should have city centre cinema provision and we’re already working on options to ensure that is delivered for our residents."

If you are unable to redeem your gift card, ticket e-codes, guest passes or readmission tickets, then you may have an unsecured claim in the Administration. The Administrators have an email address to receive and respond to creditor enquiries at [email protected].