The Cathay Cineplex outlet at Jem shopping mall in Jurong East will close on March 27, 2025, as announced by its operator, mm2 Asia. This marks yet another cinema shutdown following the closures of its Bukit Batok outlet in West Mall in February and the Ang Mo Kio branch in June 2024.
The closure comes after over a year of negotiations between Cathay Cineplex and the landlord, Lendlease Global Commercial Real Estate Investment Trust. In a filing on the Singapore Exchange, mm2 Asia stated that discussions focused on issues related to continued occupation of the premises and outstanding rental arrears.
Despite ongoing talks, Lendlease ultimately decided to terminate the lease starting from March 27, citing efforts to recover approximately $4.3 million in unpaid rent.
Cathay Cineplex acknowledged the financial difficulties, stating that the cinema industry has faced significant challenges since the Covid-19 pandemic. The company expressed appreciation for Lendlease’s support and stated that it remains committed to resolving outstanding debts.
The financial strain on mm2 Asia was reflected in its stock performance. On March 27 morning, shares of mm2 Asia dropped by 10%, following a flat closing price of $0.01 the previous day. Lendlease Reit shares also saw a slight dip, trading at $0.505, down nearly 1%.
mm2 Asia noted that Cathay Cineplexes is undergoing a process of "realigning and rightsizing" its operations to adapt to changing market conditions. While these closures are painful, the company believes they are necessary for long-term sustainability.
With the Jem closure, Cathay Cineplexes will continue operating four outlets in Singapore:
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Causeway Point in Woodlands
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Downtown East in Pasir Ris
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Century Square in Tampines
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Clementi 321 in Clementi
However, mm2 Asia is still facing financial pressure. In an earlier filing on February 3, the company revealed that Cathay Cineplexes had received letters of demand from the landlords of its Century Square and Causeway Point outlets. The letters sought nearly $2.7 million in rental arrears and legal costs. Both properties are owned by Frasers Centrepoint Trust.
The closure of multiple Cathay Cineplex outlets highlights the struggles faced by Singapore’s cinema industry. The rise of streaming platforms, shifting consumer habits, and the lingering effects of the pandemic have made it challenging for traditional cinemas to sustain operations.
Industry experts suggest that cinemas must innovate to attract audiences. Some have turned to luxury seating, premium experiences, and partnerships with major studios to stay relevant. However, for companies burdened with heavy rental costs and declining foot traffic, these measures may not be enough.
As Cathay Cineplexes continues its restructuring efforts, more closures may be possible. The company has emphasized its commitment to adapting to market demands and ensuring long-term viability. Whether it can stabilize its financial situation remains to be seen.
For moviegoers in Jurong East, the closure of the Jem outlet means fewer cinema options in the area. As the entertainment landscape evolves, it remains uncertain whether more cinemas will follow suit or if new business models will emerge to sustain the industry.
With Filmgarde Cineplexes already exit, let's support locals cinema before non-exist in future.
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