Cathay Cineplexes Operator Considers Closing Cinemas Amid Mounting Financial Challenges

Cathay Cineplexes’ operator, mm2 Asia, is seriously considering winding down its cinema operations amid escalating financial challenges and a mounting debt crisis. The entertainment group announced on July 17, 2025, that it is evaluating all possible options, including the closure of the cinema chain, to address its difficulties11.

The company faces significant pressure from repayment demands, having recently received a fresh statutory demand for about S$7.6 million and rental arrears amounts exceeding several million dollars from landlords of various cinema outlets, such as the S$3.45 million demanded by Jem’s landlord and over S$4.3 million owed leading to the closure of its Jem outlet in March 20251379. These rent arrears and liabilities largely stem from closures of loss-making cinema branches during the challenging post-pandemic recovery phase and tight cash flow constraints impacting the business1.

Previously, Cathay Cineplexes has shuttered multiple outlets, including those at West Mall (February 2025), Jem (March 2025), Parkway Parade (August 2023), The Cathay at Handy Road, and Orchard Cineleisure due to expiring leases and landlord terminations amid ongoing financial woes12912. Despite these closures, mm2 Asia has expressed commitment to "rightsizing" the cinema business while focusing more on its content and live entertainment segments, which have shown better recovery post-COVID-192.

In light of its financial strain, mm2 Asia is exploring solutions such as renegotiating lease obligations with landlords, potentially restructuring debts under court supervision, and delaying bond repayments (notably a proposed six-year delay on a S$54 million bond repayment due in December 2025)11. However, if winding up Cathay Cineplexes occurs, it would mark the end of one of Singapore’s oldest cinema chains, which has operated since 193911.

In summary, Cathay Cineplexes' operator is grappling with a severe cash flow crisis driven by unpaid rents and declining revenues amid a shifting consumer landscape dominated by streaming competition and high operating costs. The company is actively assessing closure as a last resort while seeking to restructure debts and maintain operational continuity if possible12311.