A "famous" Scottish cinema dating back to the 1950s has been placed into provisional liquidation, with the coronavirus pandemic and rising costs blamed, and an appeal to save it has been launched.

All eight staff at Oban Phoenix Cinema have been made redundant.

Blair Milne and David Meldrum of accountancy firm Azets, who have been appointed joint provisional liquidators, are asking interested parties to contact Azets “promptly, to maximise the chances of finding a buyer keen to reopen the famous venue”.

The Oban Phoenix Cinema can trace its roots on the site back to the 1950s via different operators through to the Highland Cinema which closed in 2010, the provisional liquidators noted.

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They added that the cinema in Oban has a long history dating back to the opening of the Cinema House in the 1930s with a seating capacity of 600.

The provisional liquidators 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 also been made redundant.”

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They added: “In 2012, following extensive fund-raising 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 - the larger seating 148 and featuring 3D projection facilities and the “compact” screen seating 22 - the liquidators noted.

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Mr Milne, restructuring and insolvency partner with Azets and joint provisional liquidator, 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.

"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.”