SINGAPORE – Cathay Cineplex at the Jem shopping mall in Jurong East is set to shut down on March 27, as confirmed by its operator, mm2 Asia. This decision follows a difficult year of negotiations with the property owner, Lendlease Global Commercial Real Estate Investment Trust, over pressing rental issues.

The Jem closure marks the latest in a series of setbacks for the cinema chain, which previously shut down its Bukit Batok outlet in February and plans to close the Ang Mo Kio branch in June 2024. By 9:30 am, the Cathay Cineplex website showed no upcoming movies listed for the Jem location.

According to mm2 Asia’s statement on the Singapore Exchange, their discussions with the landlord have primarily been aimed at resolving disputes related to over $4.3 million in rental arrears. Despite ongoing negotiations, Lendlease issued a termination notice for the lease, prompting the closure.

“Cathay Cineplexes is committed to realigning and rightsizing its cinema operations in response to market changes following the pandemic,” the operator remarked. They acknowledged that this difficult transition was necessary to explore new opportunities, ensuring sustainability in a shifting market landscape.

Moreover, mm2 expressed gratitude to Lendlease for their ongoing support, especially as the cinema business grapples with the repercussions of the COVID-19 pandemic that have been particularly severe for theatrical exhibitions.

On March 27, shares of mm2 Asia experienced a 10% decline, reflecting investor concerns over the company's financial health, while Lendlease Reit’s shares dipped nearly 1%.

With the closure of the Jem outlet, Cathay Cineplex will retain only four locations: Causeway Point in Woodlands, Downtown East in Pasir Ris, Century Square in Tampines, and Clementi 321 in Clementi. Earlier in February, mm2 announced that they also received letters of demand from landlords of Century Square and Causeway Point, requesting around $2.7 million in rental arrears and legal fees.

As the cinema industry continues to navigate these turbulent times, the future of Cathay Cineplex remains uncertain, sparking speculation about further closures and the evolving landscape of the entertainment business post-pandemic. Stick around—we’ll keep you updated on how this unfolding story could reshape Singapore’s cinema scene!