All eight staff at Oban Phoenix Cinema have been made redundant.
The community-owned cinema has closed and an appeal for a new buyer has been launched.
It comes days after the charity was placed into liquidation following its sudden closure due to “unforeseen circumstances”.
The closure has been blamed on a dwindling number of film-goers and revenue since the Covid pandemic, plus rising operating costs.
Oban’s nearest cinema is now over 40 miles away in Fort William.
The cinema’s history can be traced back to the 1950s.
It was run by various operators before reopening as an independent community-owned cinema and charity in 2012 following a celebrity-backed fundraising campaign.
It offered films on two screens, events and venue hire before its closure.
Blair Milne and David Meldrumfrom accountancy firm Azets have been appointed joint provisional liquidators and hope to find a buyer keen to reopen the cinema.
Call for buyer to reopen Oban Phoenix Cinema
Mr Milne said: “Despite the extensive efforts of the board of trustees, many volunteers and supporters, the financial issues affecting Oban Phoenix Cinema caused unsustainable cash flow problems and as such provisional liquidation was the only option.
“We will market the property and assets for sale and try to find a buyer keen to continue operating a cinema on the site.
“We are hopeful that our urgent call for a buyer will appeal to a variety of interested parties including existing cinema operators, an entrepreneur keen to enter the sector or a larger business willing to invest in an important and valued community asset.
“We are asking interested parties to contact Martin McGrellis at Azets by email – martin.mcgrellis@azets.co.uk.
“We will also provide every possible support to the staff that have been made redundant including assistance with the submission of claims to the Redundancy Payments Office and accessing suitable employment support services.”
Oban Phoenix Cinema say closure is ‘with deepest regret’
A spokesperson for the Oban Phoenix Cinema added: “It is with the deepest regret that we have had to close the doors of Oban Phoenix Cinema.
“We have tried to maintain the cinema for the benefit of the community however we have been struggling with a massive decline in footfall alongside a rise in costs over the last few years.
“Unfortunately, numbers have declined even further during the last few months, and it is with great sadness that we have had to close the cinema as it had become insolvent.
“We would like to thank our current dedicated staff and all the community that have supported us with their patronage since 2012.”