[SINGAPORE] Struggling cinema chain Cathay Cineplexes will wind down business operations at its JEM outlet in Jurong East on Thursday (Mar 27).
This comes as the landlord for the outlet, Lendlease Global Commercial Real Estate Investment Trust (Reit), has issued a notice to terminate the lease with the embattled cinema chain with effect from Thursday, said MM2 Asia, which operates Cathay.
“In view of the challenges facing the cinema industry since the onset of Covid-19, Cathay Cineplexes will cease operations in JEM shopping mall effective 27 March 2025. This is a result of ongoing negotiations with the landlord for more than a year,” said MM2 Asia in a Thursday media release.
“Cathay has been actively engaging with the landlord to negotiate and resolve issues related to the continued occupation of the premises and rent arrears,” but the landlord has decided to issue the notice of termination, said MM2 Asia.
Lendlease Global Commercial Reit is seeking to recoup some S$4.3 million in rental arrears that Cathay owes, among other things, up to the termination date.
The cinema chain will continue working with its landlord to settle its outstanding debts, MM2 Asia said.
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It said: “Cathay would also like to thank Lendlease for their support over the years throughout the Covid-19 period and post-pandemic, during which the cinema business had seen significant challenges and unprecedented difficulties.”
The company added that it would make further announcements in the event of any material developments.
It urged shareholders to exercise caution when dealing with its shares and to refrain from taking action potentially “prejudicial to their interests” in relation to the shares.
Shares of MM2 Asia closed Wednesday flat at S$0.01.
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