The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Fusion Superplex is "holding firm" and not made any decisions about staff terminations or financial restructuring as it awaits word from the Prime Minister on when it can open.

Nikolette Elden, the cinema and entertainment complex's marketing manager, told Tribune Business this week that it had so far held off making what Carlos Foulkes, its chief executive, had previously referred to as "some serious decisions" if it was unable to resume operations by early November 2020.

That timeline has now been reached, but Ms Elden said: "Right now we're in a holding pattern. We had hoped we would have got more detailed information from the Prime Minister's last address. We are still awaiting a government decision.

"No decision has been made in terms of 'tough decisions'. We're still holding firm and hoping the Prime Minister will give us some indication as to an opening date so we can see some light at the end of the tunnel, but they've not communicated anything yet. With the borders opening we're still under an 8pm curfew, which doesn't help us.

"We're waiting to see if there are any changes. We're all just awaiting some word from the Prime Minister: Is it a go? Can we start preparing to ramp up? We're just in a holding pattern. The good news is that no 'tough decisions' have been made. We're still really optimistic we can open soon."

Fusion Superplex, together with the likes of Mario’s Bowling and Entertainment Centre, Galleria Cinemas and bars and nightclubs, are among the final categories of businesses yet to re-open following the COVID-19 lockdown in March 2020 due to government fears that their confined spaces - together with the large crowds they attract - will lead to the virus re-emerging and spreading.

Mr Foulkes, its chief executive, had last month told this newspaper that the complex, which overlooks the JFK Drive and Gladstone Road roundabout, was pushing for permission to re-open between late October and early November so that it could adjust staffing levels to consumer demand and "know what the business is capable of" prior to the late 2020 round of Hollywood movie releases.

He added that "patience has already worn thin" among the company's lenders even though they recognised its seven-month closure was due to a pandemic beyond the company's control and is covered by a "force majeure" clause in the two sides' agreements.

Acknowledging that Fusion Superplex's debts were increasing for every day it remains closed with no revenue income, Mr Foulkes said this "creates a higher burden for the business to recover from and get back on its feet".

Fusion Superplex, whose construction budget grew from an initial $42m to $50m, was financed by a combination of Bahamas-based equity investors and overseas debt funding but Mr Foulkes has not identified any of them.

The company placed some 350 staff on furlough, or temporary lay-off, when COVID-19 first hit in mid-March and the Government forced it and other businesses to close. Some employees have previously voiced doubts as to whether the cinema and entertainment complex would re-open given the extent of the revenue and bottom-line losses produced by the company’s continuing COVID-19 lockdown.

This newspaper also reported that Fusion Superplex was unable to meet the last $500,000 monthly staff payroll before the lockdown, which Mr Foulkes blamed on the inability/refusal of the company’s debtors to pay the $1.2m in accounts receivables that they owed.

And it then emerged that the entertainment complex had not been paying National Insurance Board (NIB) contributions on behalf of staff, which had left furloughed workers unable to receive unemployment benefits when they applied. Mr Foulkes conceded then that the company was on a payment plan with NIB.