News

Reading Cinemas is set to open in the middle of 2014, following the unexpected closure of Hoyts last year. The ODT reported that Hoyts was forced to close because it was “unable to negotiate favourable terms” regarding the lease renewal. Further investigation, however, indicates that Hoyts’ tenancy would inevitably have come to an end anyway after rival, Reading Cinemas, purchased the building seven years ago, presumably with a long term intention of having a presence in Dunedin.

Hoyts’ General Operations Manager, Matthew Garelli, said that when the lease was coming to an end in August, they fought hard to renew it but “negotiations could not be agreed on” and they left the premises in September 2013. Hoyts attempted to renew their lease with the building’s owners but, as it turned out, the landlords also owned Reading Cinemas as well as being part owners of Rialto. Garelli said they were aware of this fact but it was “certainly a site I did not want to let go.” A former manager of Hoyts claimed that Reading Cinemas priced the rent for the new lease so high that it meant staying would not be commercially viable.

Reading Cinemas’ Managing Director Wayne Smith denies this, instead saying that Hoyts gave up the opportunity to stay in Dunedin years ago and were aware that renewing the lease would not be an option. Smith was the executive manager of Hoyts New Zealand for 23 years until 2004, when he became managing director of Reading Cinemas. Smith’s investment company purchased the building in 2007, following its public sale. “Hoyts had every opportunity to buy it back then,” said Smith. He says Hoyts had an equal opportunity to invest back in 2007 as a “much bigger company with much bigger resources.”

Despite the building being converted to a cinema, all furnishing, projectors and even the carpets were stripped from the building and sent to other cinemas nationwide that were in need of replacement chattels. Garelli said that “as per the lease terms, it had to be restored to its original condition.” This meant they returned it to the empty concrete block it was received as in 1993.

Smith said that Reading Cinemas did attempt to buy the chattels but Hoyts wanted a seven-figure sum for them, despite the “appalling” conditions of the furnishings. “The carpet was worn down to the concrete.” He says Hoyts “did us a favour” by putting such a high price tag on the fittings as it forced Reading Cinemas to start from scratch, “giving Dunedin a brand new cinema.” Smith says five million dollars is now being invested into the local community “to replace a cinema no one would be proud of.”

A former Hoyts Duty Manager told Critic the closure was “most certainly unexpected for everyone” and that staff felt like they were “left in the dark.” Hoyts staff members were only notified one month prior to Hoyts closing and over half the staff took more than a month to find alternative employment. A former manager said that she felt some ex-employees may have missed out on jobs because local employers have a negative view of how Hoyts ended. “They think it shut down because it wasn’t making enough money, when in fact it was doing very well.” She says that “people should know that Hoyts did not leave because of lack of success.” She described the take-over as a “corporate battle” between the two cinema companies.

Smith says there is “no hard luck story” for the staff because there will be new jobs and new opportunities. He said delays on opening had occurred because the building approval took three months and the five million dollar refurbishments are “a good five months’ worth of work.”

Garelli said it is unlikely Hoyts will relocate in Dunedin because “the market just isn’t big enough here [for another multiplex].” This follows reports to the ODT last year that “we would reconsider reopening in the future, if we were able to find a viable venue.” He disagrees with comments made regarding the chattels but would not disclose any further information. “We begrudgingly had to leave a territory we had operated in successfully for a significant length of time.”

Craig Robinson, Manager of Dunedin’s Rialto Cinema, said that since the closure of Hoyts “we have obviously been busier” but he was not concerned about the arrival of Reading Cinema. “I’m sure we will keep our customer base as it’s all about loyalty.”