Cathay cinema at Jem to close with $4.3m rental debt

The Cathay Cineplex outlet at Jem shopping mall in Jurong East will close its doors on March 27, its operator mm2 Asia said.

This came after the cinema chain closed its outlet in West Mall, Bukit Batok, in February, and its Ang Mo Kio branch in June 2024.

The closure of the Jem outlet came after more than a year of negotiations with the landlord, Lendlease Global Commercial Real Estate Investment Trust (Reit), mm2 said in its filing on Singapore Exchange.

Cathay Cineplex "has been actively engaging with the landlord to negotiate and resolve issues related to the continued occupation of the premises and rent arrears", mm2 said.

But Lendlease decided to issue a notice to terminate its lease with the cinema chain starting from March 27, as it seeks to recoup, among other things, some $4.3 million in rental arrears, mm2 added.

"Cathay Cineplexes remains committed to realigning and rightsizing its cinema business in anticipation of the market and audience shift post-Covid.

"The painful process is inevitable but will allow the cinema to explore new opportunities based on current market demands and ensure long-term sustainability," the operator added.

mm2 also thanked Lendlease for supporting the struggling cinema business, which has experienced significant challenges since the onset of Covid-19. It added that the cinema chain will continue working on settling its outstanding debts.

With the latest closure, Cathay Cineplexes will have four remaining outlets - Causeway Point in Woodlands, Downtown East in Pasir Ris, Century Square in Tampines and Clementi 321 in Clementi.