Cinema given public money could leave town complex

Cineworld opened on the Glass Works site in 2022

A cinema chain which was given public money to move to a new retail site has indicated it will now leave if it does not receive a rent reduction from its council landlord.

Cineworld opened at Barnsley's Glass Works complex in 2022 after being given more than £2m in incentive payments by Barnsley Council.

But now the company is set to shut six sites across the UK and demanded a cut to its rent at a host of others, including Barnsley, in an effort to "return our business to profitability".

The council said a reduction had not yet been agreed, but would still be "in line with market rent for the building", although others have criticised the move, which was first reported by the Barnsley Chronicle.

Cineworld was one of several large corporations to receive money from the council as part of its efforts to populate the Glass Works complex - a flagship regeneration project for the town centre - two years ago.

Public records from the council's website show it paid Cineworld £2.1m across two instalments in 2022.

The council defended the move amid criticism last year, telling the Local Democracy Reporting Service that such payments, earmarked for fit-out costs, were "standard practice" across the industry.

But local resident Derek Hawkes, who flagged the records to the BBC, said news of the possible rent reduction showed the costs of the Glass Works project had "ballooned".

"It’s a vanity project and it’s become too big to fail and so the council have been forced to throw money at it to avoid losing face, but at our expense," said Mr Hawkes, 64.

The Glass Works complex is a flagship town centre regeneration project led by Barnsley Council

Rob Younger, who runs the Parkway cinema in Barnsley - one of Cineworld's competitors - said he had sympathy for the council's position, but added that the situation "smacks of unfairness".

Mr Younger said: "I understand the reason why Cineworld are doing what they’re doing. Business has been terrible this year for all of us (in the cinema industry).

"But I think the way they've gone about it - demanding a rent reduction and saying 'take it or leave it' is all wrong.

"It’s left the council in a difficult situation because they’re damned if they do, damned if they don’t.

"We don’t know what the rent will be because it's commercially sensitive, but this could be costing the council tens of thousands of pounds. And it’s council taxpayers, including myself and my business, that will have to foot the bill."

Councillor Robin Franklin, the authority's cabinet spokesperson for regeneration, said: "Along with many of Cineworld's other landlords around the country we are being asked to adjust the rent.

"This is still going through a legal process and has yet to be agreed. While the proposed change in rent is commercially sensitive, it is in line with market rent for the building and would, if approved, continue to deliver a financial return on investment to the council."

Cineworld announced the closure of six sites last month, as it tried to find a buyer after entering administration last summer.

A spokesperson for the company said: "We are implementing a restructuring plan that will provide our company with a strong platform to return our business to profitability, attract further investment from the group and ensure a sustainable long-term future for Cineworld in the UK."

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