It is understood Queenstown’s Reading Cinemas, a fixture in The Mall, is shutting shop on February 9.
The closure comes just over a month since New Zealand chain Silky Otter opened an eight-screen complex in a new building at Frankton’s Remarkables Park.
It is believed Reading Cinemas, which has three upstairs screens and a ground-floor foyer, employs about 10 staff.
The Otago Daily Times was unable to get comment from the complex’s Australian parent company this week.
However, Richard Jensch, who operated the complex as Embassy Cinemas before selling it to Reading in about 2005, said he was not surprised.
"One of the challenges with the cinema in Queenstown was always the overheads, the rent.
"It’s expensive real estate, and I think over the years as the town’s extended, a cinema at Frankton makes probably more sense these days."
Mr Jensch said the industry was having a tough time, including competition from streaming services.
