Galway's Pálás Cinema to close due to financial losses

The Light House Cinema Group has announced that the Pálás Cinema in Galway will close at the end of February due to ongoing financial losses.

It said the decision follows months of engagement by the Pálás team with all stakeholders to try to save the cinema - including Galway City Council, The Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, the Western Development Commission and Screen Ireland.

"Regrettably, no viable alternative funding solution has been identified at this time and this leaves us with no option but to close the doors," the Light House Cinema Group said in a statement.

It invested €1.5m in Pálás Cinema in 2018 with the objective of giving the people of Galway, and surrounding areas, access to an arthouse cinema and cultural space where independent films and a variety of events could be enjoyed.

Since that time, Pálás has brought 3,000 independent films to Galway audiences, has hosted festival events, Q&As, local school screenings, and supported local filmmakers and artists.

"The Pálás team is very proud of these achievements, of the cultural partnerships that have been forged, the loyal audience that has been fostered and the incredible group of people that have worked tirelessly at Pálás Cinema to help fulfil its mission," the cinema group said.

However, it added that the financial situation at the cinema is "stark" and that continuing to operate at the level of financial loss isn't an option.

"Since the Light House Group invested €1.5m in the cinema it has incurred operating losses of over €1.8m and is now at the point where it is incurring losses of roughly €250,000 per annum to keep the doors open.

"Rising costs, the impact of Covid and the oversaturation of commercial cinemas in the Galway area have all contributed to the situation that is faced today," the group said.

The Pálás team said it will facilitate an orderly transition of the building to its owners, Galway City Council at the end of February.

The Light House Group said it recognises the impact that this decision will have on the team that works at Pálás and is providing all available supports to them during this difficult time.