Cathay Cineplexes will be shuttering operations at its Jem location in Jurong East on Thursday (March 27) following the termination of their lease.
Its operator, mm2 Asia, announced the news through a Singapore Exchange filing on Thursday.
The filing indicated that the closure was the outcome following negotiations with Cathay Cineplexes’ landlord, Lendlease Global Commercial Real Estate Investment Trust, which had been ongoing “for more than a year”.
Cathay Cineplexes had been “actively engaging with the Landlord to negotiate and resolve issues related to the continued occupation of the Premises and rent arrears”, according to mm2.
It added that the cinema chain, which owes Lendlease over $4.3 million in rental arrears, was issued a notice terminating its lease with effect from March 27.
In its statement, mm2 thanked Lendlease for their continued support during the Covid-19 pandemic which saw the cinema business go through “significant challenges and unprecedented difficulties”. It also said that the cinema chain would continue to work with the latter to settle their outstanding debts.
“Cathay Cineplexes remains committed to realigning and rightsizing its cinema business in anticipation of the market and audience shift post-Covid,” said mm2.
“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 added.
The cinema chain had earlier shut down operations at its West Mall location in February following the expiry of its lease.
With the latest closure, Cathay will have four remaining outlets at Causeway Point in Woodlands, Downtown East in Pasir Ris, Century Square in Tampines and Clementi 321 in Clementi.
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dana.leong@asiaone.com
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