Cinema chain Cathay Cineplexes to voluntarily dissolve due to financial hardships

In a significant announcement made on Monday, Sep 1, mm2 Asia, the operator of Cathay Cineplexes, revealed that the cinema chain is set to undergo creditors' voluntary liquidation. This decision comes after months of attempting to negotiate amicable resolutions with creditors, but ultimately failing to reach mutually agreeable restructuring outcomes.

The second half of the 2025 fiscal year proved exceptionally challenging for mm2 Asia's cinema business. The cinema segment of the company has faced pronounced challenges, including a slow attendance rebound post-COVID-19, intense competition from streaming platforms, and tight operating margins.

The financial woes of Cathay Cineplexes have been mounting, leading to this decision. With no feasible restructuring options available, mm2 Asia finds itself in a difficult position, owing millions in rent to its landlords due to the ongoing operations of the remaining four Cathay Cineplexes cinemas.

Six Cathay Cineplexes cinemas have closed in around three years, leaving the four outlets still in operation. Despite these challenges, Melvin Ang, mm2 Asia's executive chairman, acknowledged the legal and financial issues in the cinema business.

Recognizing its landlords as valued partners, mm2 Asia understands their position due to the prolonged recovery. An extraordinary general meeting of the members of Cathay Cineplexes and a meeting of the creditors will be convened in due course.

In the 2025 fiscal year, mm2 Asia reported a surge in group net loss to S$122.4 million (US$95.4 million), a significant increase from its S$1.9 million loss in the previous year.

In a surprising turn of events, the new owner of the remaining four Cathay Cineplexes cinemas after the Creditors' Voluntary Liquidation is mm2 Asia Ltd. This move indicates a potential restructuring or revitalization plan for the cinema chain, although details are yet to be disclosed.

As this situation unfolds, it is clear that the future of Cathay Cineplexes is at a crossroads. The industry, as a whole, continues to grapple with the impact of the pandemic and the rise of streaming platforms, making the road to recovery a challenging one.

Cinema chain Cathay Cineplexes to voluntarily dissolve due to financial hardships