[SINGAPORE] Embattled cinema chain Cathay Cineplexes on Tuesday (Jul 1) received a statutory demand from lawyers representing the landlord of its shuttered outlet at Jem shopping mall, asking that it pay up arrears of around S$3.4 million before the end of the month.
Cathay Cineplexes must pay up the monies to Lendlease Global Commercial Real Estate Investment Trust (Reit) by Jul 22, said mm2 Asia, which operates the cinema chain. Alternatively, it must secure or compound the sum to the Jem outlet landlord’s “reasonable satisfaction” by that date.
If it fails to do so, it will be deemed unable to pay its debts, the mainboard-listed entertainment company said on Wednesday.
A contractual interest of 1 per cent per month, starting from the date the monies are due up until they are paid in full, will continue to accrue on the balance sum owed to Lendlease, mm2 Asia added.
Cathay Cineplexes is currently seeking legal advice over the matter.
The struggling cinema chain wound down operations at its Jem outlet in Jurong East on Mar 27, after the closure of its West Mall cinema on Feb 20, the same day its lease at the Bukit Batok shopping complex expired.
Earlier in January, landlords of its outlets in Century Square and Causeway Point – both owned by Frasers Centrepoint Trust – issued letters of demand seeking outstanding payments for around S$2.7 million in monies owed.
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Cathay Cineplexes has other cinema outlets at Downtown East at Pasir Ris and Clementi 321.
The recent closures come as it undergoes a rightsizing exercise and optimises its operational footprint.
The cinema industry has faced challenges since Covid-19, mm2 Asia had previously noted.
Shifting consumer patterns driven by the growing popularity of streaming have also taken a toll on the movie industry’s fortunes.
This is evident in falling box-office sales across the globe, with the exception of the French market, as cinema ticket sales declined 8.8 per cent worldwide in 2024.
Units of Lendlease Global Commercial Reit finished on Tuesday 1 per cent or S$0.005 higher at S$0.525; shares of mm2 Asia ended on Tuesday 14.3 per cent or S$0.001 higher at S$0.008.
