MBO Cinemas, who is also the third largest cinema operator chain in Malaysia, will be closing its doors for good due to Covid-19 causing a decline in its financial state.
Two days before the conditional movement control order (CMCO) was put in place, MBO Cinemas had announced on its website saying that 17 locations across the country are closed until further notice, most of these cinemas are locate outside of areas affected by CMCO.
Of all the cinemas that have been closed, only four are open, those located in Kluang Mall, KSL City Mall, Kuantan City Mall and The Spring Kuching.
The longtime cinema pioneer, who has over 169 locations throughout the country, also posted the following message on its Facebook.also posted the following message on its Facebook.
“… as we venture further into 2020 with the number of rescheduled blockbuster titles and fluctuating number of local cases, we have decided to close these cinemas temporarily until further notice.”
Reported by The Edge Markets and trending around social media soon after, it says that “MBO Cinemas is facing liquidation following cash flow problems since the implementation of the government-imposed movement control order (MCO) to curb the spread of the Covid-19 pandemic.”
It is also estimated that revenue for Malaysian cinemas has declined by 80% compared to last year at the same period.
The process of liquidation would involve the closing down of the business as the company’s assets will be sold off to repay its creditors.
On August 7th, Bernama had quoted MBO Cinemas CEO Cheah Chun Wai saying that the industry had suffered a 55 per cent drop in sales during the first three months of the Covid-19 pandemic and no sales at all during the subsequent three months due to the MCO.
MBO Cinemas are yet to comment on the matter.