Cathay Cineplexes, one of Singapore’s best-known cinema operators, will enter creditors’ voluntary liquidation, its parent company mm2 Asia confirmed on 1 September.
In a filing to the Singapore Exchange, mm2 Asia announced that Cathay Cineplexes’ board had resolved it was no longer feasible for the business to continue operations, citing the company’s financial position and the lack of viable restructuring options.
The cinema operator had attempted to reach “amicable resolutions” with various creditors regarding its outstanding debts. However, those negotiations did not result in any “mutually agreeable restructuring outcomes,” the statement said.
Luke Anthony Furler and Tan Kim Han of restructuring advisory firm Quantuma (Singapore) have been appointed as joint and several provisional liquidators. An extraordinary general meeting of Cathay Cineplexes’ members and a meeting of its creditors will be convened soon.
Escalating financial distress
The decision follows mm2 Asia’s disclosure last week of a substantial increase in group net losses for the financial year ending in 2025. The group posted a net loss of S$122.4 million (US$95.4 million), compared to a loss of S$1.9 million in the previous financial year.
Commenting on the downturn, mm2 Asia executive chairman Melvin Ang said, “The second half of FY2025 was exceptionally challenging, especially with the legal and financial issues from our cinema business.”
Ang acknowledged the strain placed on Cathay’s relationships with landlords, noting, “We recognise our cinema landlords as valued partners in our business ecosystem.
However, the road to recovery has been longer than anyone expected (and) we can understand their position.”
Creditors’ voluntary liquidation occurs when a company determines it cannot meet its financial obligations and chooses to wind up operations.
In this process, creditors are consulted and a liquidator is appointed to manage the collection and sale of assets, with proceeds used to settle outstanding debts.
This differs from members’ voluntary liquidation, in which shareholders initiate the wind-up process on the belief that the company can pay its debts in full within 12 months.
During liquidation, shareholders’ rights to transfer shares are restricted unless the liquidator approves the transaction.
Multiple closures and legal claims
Cathay Cineplexes has been under sustained financial pressure for several years, exacerbated by the COVID-19 pandemic’s impact on cinema attendance, rising competition from streaming platforms, and persistently thin operating margins.
According to mm2 Asia, six Cathay cinemas have shut down over the past three years. Only four outlets remain operational.
The company has also faced mounting claims from landlords. In July, Resorts Concept issued a letter of demand for S$577,235.58 in unpaid rent related to Cathay’s cinema at E!Hub@Downtown East.
That same month, the landlord of Cathay Cineplexes’ now-closed outlet at Jem shopping mall demanded S$3.4 million in rental arrears.
Additional claimants include Century Square, Alprop, and HSBC Institutional Trust Services, acting as trustee of Frasers Centrepoint Trust.
Industry outlook
The liquidation of Cathay Cineplexes underscores the persistent challenges confronting cinema operators in Singapore, particularly amid the slow recovery from COVID-19 disruptions and increasing competition from streaming platforms.
These pressures are not limited to commercial chains; independent operators are also affected.
The Projector, a cultural mainstay known for championing alternative films and arts events, announced its voluntary liquidation last month.
It closed its Cineleisure Orchard outlet on 4 August and its flagship Golden Mile Tower venue on 19 August, citing rising costs and industry-wide shifts in viewer habits.
Together, the closures mark a sobering moment for Singapore’s cinema landscape.
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