Unlocking All Effective Ideas to Rescue, Recovery, and Closure Your Theatres and Cinemas

The theatre world has a bunch of workers – contractors, freelancers, cast, and crew. They all help each show and bring it to life on stage. This industry encourages new ideas and backs the efforts of many creative folks, like artistic directors, theatre managers, and box office staff.

As per Arts Council England, the arts and culture sector adds £10.8 billion to the economy and sustains over 350,000 jobs annually.

How to Wind Up Your Theatre or Cinema Through Liquidation? 

As directors of cinema and theatre companies face increasing financial pressures, they risk permanent closure. If the problems become insurmountable, considering liquidation options might be necessary.

A Creditor’s Voluntary Liquidation (CVL) is a formal process overseen by a licensed insolvency practitioner, aimed at closing an insolvent business. If your theatre or cinema has little chance of survival, a CVL offers a way out while ensuring fair treatment for creditors.

The CVL process includes hiring a licensed insolvency practitioner to oversee the proceedings. This path is only pursued based on the advice of an insolvency practitioner and with consent from directors and shareholders.

Creditors will be informed of the decision to close your theatre or cinema, and a report outlining the financial state of your business will be provided. The liquidation process will begin, involving the identification and sale of all company assets to repay creditors in a specific order, as outlined in the Insolvency Act 1986.

Our licensed insolvency practitioners will assess the condition of your business and suggest the most suitable course of action. This could include liquidation or exploring alternative options like Company Administration, a Company Voluntary Arrangement, or other finance solutions aimed at saving the business. We provide support throughout the business recovery or closure process and offer a free consultation with our experts in business rescue.

How Can I Rescue my Theatre or Cinema Company? 

If your business has a genuine chance of overcoming its current financial challenges, a Company Voluntary Arrangement (CVA) can offer the breathing space it needs.

A CVA is an official insolvency process managed by a licensed insolvency practitioner. It allows you to renegotiate payment terms with creditors, making payments more manageable through affordable instalments. 

Normally, this involves spreading payments over 3-5 years, subject to agreement from creditors. This gives you the necessary financial flexibility to repay debts over an extended period.

If you want to prevent liquidation, and your theatre or cinema holds substantial assets, company administration offers protection against legal actions. Under this arrangement, a licensed insolvency practitioner oversees business recovery efforts.

The insolvency practitioner will serve as the administrator, managing the company’s finances and assets to generate returns for creditors. Company administration can safeguard your business from compulsory liquidation and maintain its viability.

Your theatre or cinema business might find it challenging to meet its financial obligations due to limited cash flow. If injecting cash can revitalise your business, attract customers, and stimulate demand, commercial finance could be the solution.

We collaborate closely with top finance lenders who provide competitive rates, offering a direct path to various products for your theatre or cinema. Our specialised finance team can arrange a variety of company finance solutions, including invoice finance, asset finance, or business loans, to enhance company cash flow.