‘Unfortunate’: Cathay Cineplexes ceases operations after months of financial troubles, as operator’s losses skyrocket
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SINGAPORE: Cathay Cineplexes ceased operations on Monday (Sep 1) after months of financial troubles and failed attempts to resolve millions in unpaid debts.
Just last week, Channel News Asia (CNA) reported that Cathay Cineplexes operator mm2 Asia’s net loss for the 2025 financial year skyrocketed to S$122.4 million, from just S$1.9 million the year before.
The company’s executive chairman, Melvin Ang, said the second half of FY2025 was “exceptionally challenging” due to the legal and financial issues from the cinema business.
In a bourse filing on Monday, mm2 Asia said Cathay Cineplexes had attempted to negotiate “amicable resolutions” with its various creditors but was unable to arrive at “mutually agreeable restructuring outcomes” of its payment obligations.
After carefully considering the chain’s financial position and the absence of restructuring outcomes, the board decided it was no longer feasible to continue operating and moved to place the company under creditors’ “voluntary liquidation”.
The board appointed Luke Anthony Furler and Tan Kim Han of Quantuma (Singapore) as provisional liquidators.
The operator added that an extraordinary general meeting with Cathay Cineplexes members and a meeting of the cinema chain’s creditors will be convened in due course.
CNA reported that a notice informing patrons of the closure was put up outside the Cathay Cineplexes outlet at Century Square.
Over the past three years, six Cathay cinemas have closed, leaving only four in operation before Monday’s liquidation announcement. The chain owed millions in rent across several outlets.
In February, landlords of the Century Square and Causeway Point outlets demanded about S$2.7 million in rent. In a bid to save its screens, that same month, Cathay Cineplexes even launched an SOS campaign offering cinema-goers a S$100 voucher deal for 10 movies, popcorn, and drinks. However, the cinema chain later announced another closure—its West Mall outlet in Bukit Batok.
In July, it received yet another S$3.4 million in rental demand over its former Jem outlet, followed a week later by another S$7.56 million repayment request.
After being hit with rental demands left and right that same month, mm2 Asia said it was evaluating “all available options,” including winding up its cinema business, to address the financial challenges it was facing.
Online, netizens said the closure was “unfortunate,” although expected, given the rise of streaming platforms. One commenter said, “The money goes where the wind blows.” Others pointed out that while “the movie experience is always good and fun”, it had unfortunately become “too expensive”—with the high cost of tickets, food, and drinks.
Meanwhile, another remarked, “When JB is so near and with the exchange rate, one ticket in Singapore on a weekend is equal to two tickets in JB. Same for food. The value from JB [is] too good already.” /TISG