Latest news with #CathayCineplexes
CNA
6 days ago
- Business
- CNA
CNA938 Rewind - Is the cinema scene dead in Singapore?
Cathay Cineplexes operator mm2 Asia could cease its cinema operations in Singapore, due to ongoing financial challenges. What could this mean for the cinema scene here? Lance Alexander speaks with Dr Jinna Tay, Senior Lecturer, Communications And New Media, NUS.
Business Times
6 days ago
- Entertainment
- Business Times
Cathay cinema survived a world war, but there may not be a sequel for the icon
[SINGAPORE] Cathay cinema could face its final curtain call after 85 years, as streaming and shifting consumer patterns deal a fatal blow to theatres around the world. mm2 Asia - which bought the cinema chain in 2017 - on Thursday (Jul 17) said that Cathay Cineplexes' closure is one of several options being explored, in light of financial challenges. Originally known as Cathay Cinema, Cathay Cineplexes is one of Singapore's oldest cinema chains and its origins predate Singapore's independence and World War II. It opened its doors to the public in October 1939, as Singapore's first air-conditioned theatre. Having survived a world war, Cathay launched Singapore's first drive-in theatre in the 1970s and grew its network of theatres. The Business Times traces Cathay's storied history: BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Origins July 1935: Loke Cheng Kim incorporated Associated Theatres in Singapore. The Penang-born businesswoman had noticed a lack of entertainment establishments. Her husband Loke Yew was a Malaysian tycoon who made his fortunes in Malaysia and the region through tin mining, real estate and banking. 1936: A year later, her son, the prominent film entrepreneur Loke Wan Tho, embarked on the building of Cathay Cinema and the famous Cathay building. Wan Tho was a businessman and had a keen interest in ornithology and photography. Oct 3, 1939: Cathay Cinema's first outlet opened to the public, with the screening of a formerly banned film, The Four Feathers. The 1,300-seat theatre was located in the landmark Cathay building on 2 Handy Road. The 16-storey tower also housed a hotel and was Singapore's first skyscraper and tallest building at the time of its completion. 1941: The building was leased to the British colonial government and the Malayan Broadcasting Corporation and was used to broadcast war updates. 1942-1945: It housed the Japanese broadcasting department, military propaganda department and the military information bureau. Post-World War Two expansion 1945: The cinema reopened after the war, and the Cathay building became the headquarters for the Supreme Allied Commander of South-east Asia, Admiral Louis Mountbatten. February 1949: Cathay Organisation regained control of the building after the government vacated it. 1959: Associated Theatre was renamed Cathay Organisation. 1965: Cathay unveiled its second cinema, Orchard Theatre. Jul 14, 1971: It opened Singapore's first drive-in cinema in Jurong. The 5.6-hectare site at Yuan Ching Road, next to the Japanese Gardens, could pack 900 cars and 300 patrons in its walk-in gallery. The drive-in shuttered in 1985 due to poor attendance and rising competition from pirated videos. 1991: Cathay Cinema expanded from a single-screen to a multiplex with numerous cinema halls. 1997: The Cathay Cineleisure Orchard mall opened at the former site of the Orchard Theatre. 1998: Cathay Cineplexes incorporated to manage cinema operations. 1999: Cathay Organisation listed on the Singapore Stock Exchange. It was delisted in 2006. Jun 30, 2000: The cinema at the Cathay building closed as part of Cathay Organisation's S$100 million plan to redevelop the building. Feb 10, 2003: Alongside MacDonald House, the Cathay building was gazetted as a national monument. It was partially demolished, with its art deco facade preserved. 2006: The Cathay reopened as a cineplex, private residence and mall. Change in ownership November, 2017: The Cathay Organisation sold its cinema business to mm2 Asia for S$230 million. The entertainment company took over its eight theatres, comprising 64 screens, and purchased all shares of its cineplex subsidiary. March 2021: mm2 Asia was said to be mulling a spin-off of its cinema business with a Catalist listing. Battered by shrinking revenue during the pandemic, the segment weighed on the group's earnings and shares, having clocked a S$16.5 million pre-tax loss in 2020. Jun 27, 2022: Cathay Cineplexes ceased operations at its iconic The Cathay outlet on 2 Handy Road. Its space became a pop-up outlet for independent cinema operator The Projector from Aug 23, 2022. (ST) mm2 Asia said the move was part of cost rationalisation for its cinema operations. Cinema closures and unpaid arrears Jan 28, 2025: Cathay Cineplex received letters of demand from landlords of two outlets seeking around S$2.7 million in monies owed. Century Square sought payment of S$479,185 in rental arrears and other monies by Feb 10. Causeway Point demanded payment of S$1.2 million by Feb 10 and for S$1 million to be paid to its trustee, HSBC Institutional Trust Services, by Feb 3, in addition to legal fees. Both properties are owned by Frasers Centrepoint Trust (FCT). Feb 6, 2025: Responding to SGX queries, mm2 Asia said it had paid back S$12 million owed to landlords, and the remaining S$2.7 million is a quarter of the total sum owed to the two outlets' landlords from Apr 1, 2020, to Jan 31, 2025. The bourse operator had questioned why the owed monies were not yet paid despite mm2 Asia posting S$10.1 million in cash and cash equivalents for its H1 financials that year. The group clarified that Cathay Cineplex was not disputing the payments and added that the S$10.1 million in cash and cash equivalents were not restricted or encumbered, but instead had been partially deployed to its other businesses. It added that the cinema industry's slower-than-expected recovery hampered Cathay Cineplex's ability to repay arrears in a timely manner and said it was actively engaging the landlords to resolve the matter. Feb 17, 2025: mm2 Asia said Cathay's outlet at West Mall, owned by Singapore Land Group, would close for reinstatement works on Feb 20 - the same day its Bukit Batok shopping complex outlet's lease expired. It added that the cinema chain had been undergoing a post-Covid rightsizing for the past two years. Mar 27, 2025: mm2 Asia announced the closure of Cathay Cineplex's Jem cinema on Mar 27 as the outlet's landlord was terminating its lease from that date. The landlord, Lendlease Global Commercial Reit, sought S$4.3 million in monies owed by Cathay Cineplex. May 28, 2025: mm2 Asia proposed the S$1.7 million sale of part of its 29.29 per cent stake in its subsidiary Vividthree Holdings. It said proceeds would be used to repay outstanding debt and improve its financial position. Jul 1, 2025: Cathay Cineplexes received a S$3.4 million payment demand from Lendlease Global Commercial Reit, for arrears related to the cinema chain's use of the shuttered Jem premises. It was to pay up the monies by Jul 22, or alternatively, secure or compound the sum to the satisfaction of the Jem outlet landlord by that date. Jul 4, 2025: mm2 Asia proposed a placement of 1.875 billion shares to raise funds. Full subscription at S$0.008 per share would yield S$14 million in net proceeds. mm2 Asia said S$7.5 million would go to debts and liabilities, while the remainder would be for working capital. Jul 15, 2025: Cathay Cineplex gets statutory demands from FCT, the landlord of its Century Square and Causeway Point outlets, seeking more than S$3.3 million in owed monies. It must pay up the full amount by Aug 5, 2025, or alternatively secure or compound the sums to FCT's reasonable satisfaction. Jul 16, 2025: The cinema operator proposed extending the repayment deadline of S$54 million bonds maturing in December by six years, to Dec 31, 2031, avoid a default. Jul 17, 2025: To address financial challenges, mm2 Asia said it is considering winding up Cathay Cineplexes among other options. These include continuing talks with landlords to restructure existing obligations under a court-supervised process that allows operations to continue.
Independent Singapore
7 days ago
- Business
- Independent Singapore
Will Cathay Cineplexes soon bid its final farewell amid millions in debt?
Photo: Google Maps/Ivan Lim SINGAPORE: Cathay Cineplexes may soon bid its final farewell, with owner and operator mm2 Asia announcing it is evaluating 'all available options'—including winding up the cinema business—to address the millions of dollars in financial challenges it is facing. In a bourse filing on Thursday (July 17), mm2 Asia said, 'The Group has been committed towards the continued operation of its cinema business in Singapore. However, such commitment requires the support from its landlords, which has not been meaningful despite the difficult operating environment for cinemas and the wider retail industry over the past years caused by, amongst other things, the COVID-19 pandemic.' Channel News Asia (CNA) reported that in the last three years, Cathay Cineplexes has closed six outlets across Singapore, including its West Mall outlet in February. Only four are still operating today. Before announcing its West Mall outlet closure, mm2 Asia received letters of demand from landlords of its Century Square and Causeway Point outlets, seeking S$2.7 million in unpaid rent and other costs . That figure has since risen to over S$3 million. More demands have come in this month. The landlord of its former Jem outlet is seeking around S$3.4 million in rental arrears, while Linkwasha Holdings is demanding repayment of S$7.56 million from a S$30 million loan Linkwasha provided in 2017, which helped fund mm2 Asia's acquisition of Cathay Cineplexes from Cathay Organisation. The company said that while it has repaid its loan over the years, the outstanding amount is now due by July 28. In a separate bourse filing on Wednesday (July 16), the company also proposed to extend the maturity date of a S$54 million bond deal originally due December 29, 2025, to December 30, 2031. mm2 Asia said it is reviewing all options in light of its recent receipt of various statutory demands and outlined three possible paths forward: To continue negotiations with Cathay Cineplexes' landlords with the aim of restructuring existing obligations consensually To pursue a scheme of arrangement under a court-supervised process to restructure the cinemas' debts while keeping operations running Or to pursue the winding up of Cathay Cineplexes In February, Cathay Cineplexes launched its 'Save Our Screens' campaign in a bid to keep its cinemas running. However, the move drew flak from cinema-goers who faced issues using their vouchers. mm2 Asia said it would make further announcements should there be any material developments regarding legal demands or lease-related matters. 'Shareholders are advised to exercise caution when dealing in the securities of the company and to refrain from taking any action in relation to their shares which may be prejudicial to their interests,' it added. /TISG () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
AsiaOne
7 days ago
- Business
- AsiaOne
Mm2 Asia considering closing Cathay Cineplexes amid millions of dollars in debt, Singapore News
Mired in millions of dollars in debt, Cathay Cineplexes' parent company mm2 Asia said on Thursday (July 17) that it is considering closing its cinema business. CNA reported that winding up one of Singapore's oldest cinema's chains is one of the options mm2 Asia is evaluating to address its "ongoing financial challenges". It has been operating since 1939, and was originally known as Cathay Cinema. "The group has been committed towards the continued operation of its cinema business in Singapore," said the Singapore Exchange-listed company. "However, such commitment requires the support from its landlords which has not been meaningful despite the difficult operating environment for cinemas and the wider retail industry over the past years caused by, amongst other things, the Covid-19 pandemic." Six Cathay Cineplexes cinemas have closed in the last three years, with the remaining four in operation at Causeway Point, Century Square, Downtown East and 321 Clementi. Mm2 Asia owes $3.3 million to the the landlords of its Century Square and Causeway Point cinemas. The Straits Times reported that the company has three weeks to pay the full amount or secure or compound the sum to the reasonable satisfaction of the landlord of both premises, Frasers Centrepoint Trust. Earlier this month, mm2 Asia received a demand for $3.4 million in arrears from Lendlease Global Commercial Reit, the landlord of its shuttered outlet at Jem Shopping Mall. Linkwasha Holdings has also served a demand for a repayment of $7.6 million by July 28 — the outstanding amount from a $30 million loan to finance the acquisition of Cathay Cineplexes from Cathay Organisation. Mm2 Asia said that its other options include continuing negotiations with landlords with the aim of restructuring existing obligations consensually, or try and restructure existing obligations under a court-supervised process while continuing operations. [[nid:716095]] chingshijie@
CNA
7 days ago
- Business
- CNA
Cathay Cineplexes operator mulls closing down its cinemas to address 'financial challenges'
SINGAPORE: Cathay Cineplexes' operator is mulling several options – including winding up the cinema business – as it struggles with millions of dollars in debt. Mm2 Asia, which owns and operates Cathay Cineplexes, said in a bourse filing on Thursday (Jul 17) that it is evaluating all available options to address its "ongoing financial challenges". "The group has been committed towards the continued operation of its cinema business in Singapore," said mm2 Asia, which is listed on the Singapore Exchange (SGX). "However, such commitment requires the support from its landlords which has not been meaningful despite the difficult operating environment for cinemas and the wider retail industry over the past years caused by, amongst other things, the COVID-19 pandemic." Six Cathay Cineplexes cinemas have closed in around three years, leaving four outlets still in operation. In February, mm2 Asia revealed that it had received letters of demand from the landlords of its Century Square and Causeway Point cinemas for S$2.7 million (US$2.1 million) that it owed in rent and other costs. The amount owed is now more than S$3 million. This month, the landlord of Cathay Cineplexes' shuttered outlet at Jem shopping mall demanded payment of about S$3.45 million in rental arrears, while Linkwasha Holdings is seeking more than S$7 million in repayment. Mm2 Asia borrowed S$30 million from Linkwasha Holdings in 2017 to finance the acquisition of Cathay Cineplexes from Cathay Organisation. The majority of the loan has been repaid, but Linkwasha Holdings has asked for the outstanding amount to be paid by Jul 28. On Wednesday, mm2 Asia also announced that is has proposed to extend the repayment deadline for a S$54 million bond deal from December this year to Dec 30, 2031. CATHAY'S AVAILABLE OPTIONS With the difficult operating environment and the "recent receipt of various statutory demands", mm2 Asia said it is evaluating options, including three that it outlined. The first is to continue negotiations with landlords with the aim of restructuring existing obligations consensually. The second option is to seek a scheme of arrangement to restructure existing obligations under a court-supervised process while continuing operations, and the third is to pursue a winding up of Cathay Cineplexes. In an exclusive interview with CNA in February, mm2 Asia's founder and executive chairman Melvin Ang said he was optimistic about the cinema business. 'I am still very passionate, and I want to continue to maintain and grow this business,' he said at the time, adding that the company wanted to "push on".
