KUALA LUMPUR: The third largest cinema chain operator in Malaysia, MBO Cinemas, will be shutting its doors for good due to its declining financial state brought on by the Covid-19 pandemic and the ensuing Movement Control Order (MCO) earlier this year.
The unfortunate news was reported today by The Edge Markets, which sighted a notice on the intention of executing the liquidation process for MBO Cinemas, which is formally known as MCAT Box Office Sdn Bhd.
This process would involve the closing down of the business as the company's assets are sold off to repay its creditors.
On Tuesday, MBO Cinemas released an announcement on social media that 17 of its 27 locations nationwide would be closed until further notice.
Due to the current Conditional MCO (CMCO), five other branches in Selangor and Kuala Lumpur, and one in Sabah were shuttered as well.
A Bernama report on Aug 7 had previously quoted MBO Cinemas CEO Cheah Chun Wai, as 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.
Calls to MBO Cinemas for further clarification have not been answered.