SINGAPORE: The Cathay cinema at JEM shopping mall closed on Thursday (Mar 27), with the operator mm2 Asia owing the landlord about S$4.3 million (US$3.2 million) in rent.
In a Singapore Exchange filing on Thursday, the company said it was shutting the outlet “in view of the challenges facing the cinema industry since the onset of COVID-19”.
“This is a result of ongoing negotiations with the landlord for more than a year,” it added.
Cathay Cineplexes received a notice of termination from DBS Trustee Limited – as a trustee of Lendlease Global Commercial REIT – the landlord at JEM.
The cinema operator said it had been “actively engaging” the landlord to negotiate and resolve issues related to the occupation of the premises and the rent arrears.
However, the landlord decided to terminate the lease agreement and is seeking to recover the rent, among other things. The company said it would continue to work with the landlord to settle the outstanding sums.
This is the sixth cinema closure by mm2 Asia in less than three years – the Cathay Building, Orchard Cineleisure, Parkway Parade, AMK Hub, West Mall and now JEM.
“Cathay Cineplexes remains committed to realigning and rightsizing its cinema business in anticipation of the market and audience shift post-COVID,” said the company.
“The painful process is inevitable but will allow the cinema to explore new opportunities based on current market demands and ensure long-term sustainability.”
It also thanked Lendlease for its support throughout the COVID-19 period and after the pandemic, during which the cinema business saw “significant challenges and unprecedented difficulties”.
In an exclusive interview with CNA last month, mm2 Asia’s founder Melvin Ang said he is not giving up on the silver screen and remains optimistic about the chain’s future.
Last month, the company said it had received letters of demand from the landlords of its Century Square and Causeway Point cinemas for S$2.7 million (US$2 million) owed in rent and other costs.
