Secret talks with pub giant over Edinburgh Filmhouse future after £2.65m sale is confirmed

One of Scotland's biggest pub operators is said to be involved in secret talks to reopen Edinburgh's boarded-up Filmhouse cinema after snapping up the historic cinema building.

An image from romantic comedy film Gregory’s Girl was projected onto the Filmhouse in Edinburgh after its sudden closure. Picture: Jane Barlow

Caledonian Heritable, owners of The Dome, Ryan's Bar and the Theatre Royal In Edinburgh, are believed to be the new owners of the site on Lothian Road.

Administrators have confirmed that the building has been sold for £2.65 million more than six months after the sudden closure of the Filmhouse when its parent company, the Centre for the Moving Image, collapsed.

Councillors have identified the Edinburgh-based company, which is said to be in behind-the-scenes negotiations with the Scottish Government, its Screen Scotland agency and the council over the possibility of the art house cinema reopening within months.

The Filmhouse cinema in Edinburgh has been closed since October. Picture: Lisa Ferguson

It is hoped the firm will agree to lease the building, which was home to the Filmhouse for more than 40 years, to a new publicly-funded operator.

However the proposal, which is understood to be under serious consideration by the company, will also need the agreement of the Scottish Government and Edinburgh City Council, including pledges to maintain funding for the Filmhouse.

News of a possible Filmhouse rebirth is the latest twist in the saga over the building, the long-time home of the Edinburgh International Film Festival, which was put onto the open market by administrators FRP Advisory in November.

A crowdfunding appeal set up by former senior members of staff at the Filmhouse fell well short of a £2 million target, despite securing the backing of stars like Brian Cox, Sam Heughan and Jack Lowden, while several other reopening bids were said to have been turned down by the administrators.

Protesters gathered outside the boarded-up Filmhouse last month to call for the boarded-cinema to be saved. Picture: Annabelle Gauntlett.

A crucial development emerged in January when councillors rejected a bid by the administrators to transfer the building’s licence.

Another hospitality operator, the Signature Pub Group, blamed the licensing decision scrapping a bid, claiming it had been the front-runner to buy the building.

It emerged last month that the Scottish Government, its Screen Scotland agency and the city council were still hoping to reopen the Filmhouse amid frustration that the administrators were reluctant to reopen the bidding process.

Councillors later gave their unanimous backing to the idea of the Filmhouse reopening as a cultural cinema and film education hub, while actress Tilda Swinton, filmmakers Mark Cousins, Kevin Macdonald and Edgar Wright, and screenwriters David Macpherson and Paul Laverty are among those to offer their support.

Caledonian Heritable own The Dome on George Street in Edinburgh.

The EIFF is to be revived this year on a one-off edition staged as part of the Edinburgh International Festival.

Caledonian Heritable was named as the new owners of the cinema building at the latest demonstration staged by activists in the Save the Filmhouse campaign, which has called for elected politicians to get more actively involved in efforts to bring it back to life.

There have also been demands for councillors to reject any attempts by pub operators to secure a new licence for the building, which is in an official area of “over-provision” of licensed premises.

Insiders say “positive” discussions have been held with Caledonian Heritable about a possible lease-back arrangement with the company, which has not commented on the sale of the building.

One source said: “All is not lost, despite the sale of the building. There’s a lot of work going on in the background.

"This could have a positive outcome, but it will need all parties to show a willingness to reach an agreement.

“It is not impossible that the Filmhouse could be up and running again later this year.”

One Labour councillor, Tim Pogson, has told campaigners that everything possible was being done to “retain the Filmhouse as a centre of cultural cinema for our city.”

He said: "Our current understanding is that a successful bid has been made for 88 Lothian Road by Caledonian Heritable but we do not know whether there are multiple interests in this current bid, which may include cinema operators.

“You suggest that we could withhold a licence application to prevent the building’s use as a pub.

"Of course the Filmhouse was a licensed premises and operated a very popular bar/café facility, so depending on the intended business model, we might wish to promote some licensed activity.

“However, licenses must be granted based on strict legal guidelines and unfortunately, these would provide the only basis on which we could grant or withhold a licence.

"It may be possible to construct an argument that there is over-provision of licensed premises on Lothian Road but as I say, we may wish to support licensed activity in support of cultural cinema, in the same manner as the Filmhouse Café.

“Please be assured, we are working collaboratively with all stakeholders to try to secure a positive outcome.”

SNP councillor Finaly McFarlane said: “It isn’t over yet. It isn’t over yet.

"It’s a private sale, so it’s been difficult ascertaining facts and working sensitively towards solutions means frustratingly not being able to answer rightful questions from the public about what we are doing.

“It’s thanks to campaigners for bolstering efforts we are where we are at the moment.

"Caledonian Heritable have a real opportunity to be the heroes here. The council, Screen Scotland etc all need to be ready to find a workable future to keep the home of cultural cinema alive.”

The Scottish Government has told campaigners that there was “no doubt about the important role of the Edinburgh Filmhouse in Scotland’s cinema and festival landscape.”

The government added in its letter: “Cinemas like the Filmhouse provide an important space for Scotland’s communities as a vital source of cultural experience, community connection and wellbeing.”

A spokeswoman for the Scottish Government said: “Discussions are ongoing with Creative Scotland and other stakeholders to explore options for cultural cinema activity in Edinburgh, as well as ways to support the 2023 edition of the Edinburgh International Film Festival, with the associated opportunities for employment and audiences those will bring.”

No-one at Caledonian Heritable was available to comment.