Oban Phoenix Cinema going into liquidation, confirms watchdog

In a shock announcement posted on the cinema’s locked door, website and social media on May 29, the Phoenix’s Board of Trustees said: "Due to unforeseen circumstances, the Oban Phoenix Cinema will be temporarily closed until further notice."

A spokesperson for the Scottish Charity Regulator, the OSCR, told The Oban Times on May 30: "Oban Phoenix Cinema (SC042407) applied OSCR for consent to wind-up due to being insolvent.

"Consent has been granted by OSCR and they are currently going through the process of appointing liquidators."

The website Insolvency Experts explains: "Whilst liquidation and administration are both formal insolvency procedures, they are very different processes which aim to achieve different outcomes.

"In simple terms, liquidation brings the end of a company by selling its assets before dissolving the company entirely. Administration is utilised when there is a chance of rescuing a business that is experiencing high levels of financial stress."

Oban Phoenix Cinema opened its doors as an independent community-owned cinema in August 2012.

According to the Phoenix’s accounts lodged on the OSCR website, the cinema had an income of £279,154 and an expenditure of £329,192, in the financial year ending March 31 2023. The year before, ending 31 Mar 2022, the cinema broke even, making £304,760 and spending £303,539.

The cinema had been struggling financially earlier this year. Too many empty seats had forced it to cut screenings from seven days a week down to three back in February. A director on the board told us rising overhead costs had left them no other choice. Nine jobs relied on the cinema, but the change meant fewer working hours on the rota. The director said at the time: "It is now very much a use it or lose it scenario."