Reading Cinemas in Dubbo will close on April 30.
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Staff at the five-screen complex in Riverdale shopping centre received the bad news on Wednesday night, a source told the Daily Liberal on Thursday.
The cinema opened amid much fanfare on June 10, 1999 and attracted "good consistent business for 15 years", the source said.
In November last year Reading Cinemas spent half a million dollars updating projection and sound equipment at the Dubbo complex.
The source said the cinema lease was coming to an end and the company head office had decided the lease would not be renewed.