THE parent charity of the Edinburgh International Film Festival, the Filmhouse Cinema and the Belmont Filmhouse in Aberdeen has entered administration.

The news means all will "cease trading immediately" with 102 staff members made redundant.

The administrators, FRP Advisory, said they were hopeful a business "already operating in the film industry or entrepreneurs looking to enter the film industry will be encouraged to register their interest in the assets.”

The charity said it was "facing the perfect storm of sharply rising costs, in particular energy costs, alongside reduced trade due to the ongoing impacts of the pandemic and the cost of living crisis."

According to administrators, audience figures were down by more than 50 per cent since before the Covid lockdown.

The organisation had also become "heavily reliant on various government-backed emergency funding packages and support measures during the pandemic".

That and the "escalating operating costs and overheads" added to "unsustainable cash flow problems and debt" leaving administration as "the only option."

In a statement, the board of the charity said: "We have been proud to have led the CMI through incredibly challenging times, and in particular during the worst days of the pandemic.

"Unfortunately, the combination of sharply increasing energy and other costs, together with both the lasting impacts of the pandemic and the rapidly emerging cost of living crisis affecting cinema attendances, means that we have had no other option but to appoint administrators at this time.

“We would like to put on record our immense gratitude to the entire staff team whose passion for film as an artform and for the audiences and communities we work with and serve has remained undented by the challenges of recent years.

"We’re fully aware that this will be an exceptionally stressful time for them.”

According to the statement FRP Advisory will work with Creative Scotland and councils in Edinburgh and Aberdeen "in assessing what options there are for the future of the individual elements of the charity’s work and supporting staff through the process."

The CMI employed 58 staff, while the Filmhouse had 22. The Belmont had another 20 while the film festival had two. Five members of staff will be retained "to assist with the administration process."

The shock news comes just months after the CMI lodged a planning application for a new nine-story £60m building in Edinburgh.

The Herald:

They had initially unveiled plans for the building in Festival Square in the city in 2020. It would have included a skyline bar and restaurant and a roof-top performance space.

The Film Festival celebrated its 75th anniversary in August, returning to a fully in-person event for the first time since the pandemic. It is the world's oldest continually running film festival.

Tom MacLennan, one of the joint administrators, said: “Centre for the Moving Image was central to the development and promotion of Scotland’s thriving film industry and the catalyst behind many learning, cultural and development initiatives that widened the enjoyment and reach of film across Scotland. 

"Unfortunately, CMI and its three subsidiary businesses have been severely affected by a wide range of factors that have rendered all businesses unsustainable and administration was the only option. 

"We are hopeful that businesses already operating in the film industry or entrepreneurs looking to enter the film industry will be encouraged to register their interest in the assets.”

The plight of the cinemas was raised during Thursday's First Minister's Questions. 

Labour MSP Daniel Johnson asked Nicola Sturgeon about what the government could do "in order to save this vitally important cultural institution."

The First Minister said the news was "of huge concern and I know many people in Edinburgh and Aberdeen will be profoundly upset about it."

She added: "These are really important cultural organisations and all of us want to see them if at all possible go from strength to strength.

"The Scottish Government will engage to consider whether there is any support we can bring to bear. I will ask [Culture minister] Angus Robertson, to engage with Aberdeen and Edinburgh city councils and ensure that Creative Scotland, which of course takes funding decisions independently of ministers, engages with these organisations as well. 

"Obviously, I cannot give any commitment standing here right now and I can't go into any more detail ahead of that engagement, but I can say that we recognise the importance of these organisations, and we'll do everything possible to support them at this difficult time."

An Aberdeen City Council spokesperson said: “This will be a very difficult time for employees of the charity, and our immediate focus is to support those directly affected.

"We are being updated on the developing situation and will work with partners to explore available options.”