CATHAY Cineplexes will cease operations at its iconic location, The Cathay, located at 2 Handy Road, after Sunday, Jun 26 2022.

The cinema chain, a subsidiary of mm2 Asia, will continue to operate its other 7 cinema locations. The closure is part of a cost rationalisation for its cinema operations.

“Over the years, retail traffic demographics have changed. We have had to evaluate the commercial viability of operating two cinemas in the Orchard shopping belt within 1.5km of each other and within 300m of another multiplex,” says Chang Long Jong, group chief executive officer, mm2 Asia.

The cinema business is still a key part of mm2’s overall business strategy, according to Chang. The Covid-19 pandemic has had a substantial impact on the cinema industry, with cinemas closed for several months, and then later required to operate at reduced capacity. Scheduled movie releases were also postponed or cancelled, impacting cinema operations.

“Business for the cinemas has picked up significantly since the relaxing of Covid-19 restrictions, and we are actively exploring new cinema innovations that incorporate concepts for live house, esports, as well as other offerings and locations, which we hope to be able to share more soon,” said Chang.

Local independent cinema operator The Projector will take over the space as a pop-up from Aug 23, 2022. The pop-up, Projector X: Picturehouse, will screen film, live theatre productions, performing arts and live music.

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“We are super stoked with this unique opportunity to explore and experiment at The Cathay, an iconic grand dame from 1939, which has a storied past and is synonymous with an illustrious chapter in local cinematic history,” said Karen Tan, founder, The Projector.

Shares of mm2 Asia closed 3.5 per cent or S$0.002 higher at S$0.06 on Friday (Jun 17).