MBO Cinemas Could Be Closing Down For Good Due To COVID-19
The company has been struggling financially since the implementation of the MCO.
By May Vin Ang — 15 Oct 2020, 07:11 PM — Updated almost 4 years ago
MBO Cinemas could be closing its doors for good following months of financial problems since the Movement Control Order (MCO) was implemented to curb the spread of COVID-19
In a notice sighted by The Edge Markets today, 15 October, MBO Cinemas, or MCAT Box Office Sdn Bhd, is currently going through voluntary liquidation because the company has been facing cash flow problems.
The process of liquidation involves the company closing its business and selling off its assets to repay creditors.
MBO Cinemas is the third largest cinema chain operator in Malaysia, after Golden Screen Cinemas and TGV Cinemas.
In August, MBO Cinemas chief operating officer Cheah Chun Wai had asked the government to provide financial support to cinema operators in the country
He said the industry suffered a 55% drop in sales during the first three months of the outbreak and then no sales at all during the subsequent three months.
"We are experiencing a loss of RM2 million daily, this is generally not only MBO Cinemas but all cinemas as well. So, we hope the government can address this problem and help us to recover," he told Bernama on 7 August.
On Monday, 12 October, MBO Cinemas released an announcement on Facebook that 17 out of its 27 locations nationwide would be closed until further notice
Meanwhile, it has closed an additional six cinemas in Kuala Lumpur, Selangor and Sabah due to the Conditional Movement Control Order (CMCO).
