MBO Cinemas is one of the companies that got badly affected because of the COVID-19 Pandemic situation. They have been struggling financially since the Movement Control Order (MCO) has been implemented here in Malaysia as one of the strategies to curb the spread of COVID-19. Due to that, MBO Cinemas could be closed down for good.
On the 12th of October 2020, MBO Cinemas has released an announcement on their official Facebook social media platform informing that there would be 17 out of its 27 locations nationwide would be closed until further notice. Other than that, it has also closed an additional 6 other cinemas that are located in Kuala Lumpur, Selangor, and also Sabah due to the Conditional Movement Control Order (CMCO) been implemented.
Right on the date of 15th October 2020, MCAT Box Office Sdn Bhd or better known as MBO Cinemas has been recently going through some voluntary liquidation. This is because the particular company has been facing a lot of cash flow problems due to the COVID-19 Pandemic.
This process of liquidation actually involves the company that has to close its business and selling off its assets to repay creditors. MBO Cinemas would be the third-largest cinema chain operator that ever existed in Malaysia. This company comes right after Golden Screen Cinemas and also TGV Cinemas.
The chief operating officer for MBO Cinemas that is Cheah Chun Wai has stated to Bernama that, “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”. This is because the particular industry has suffered an amount of 55% drop in the sales during the first three months because of COVID-19 Pandemic and then no sales at all during the subsequent three months just make the situation worse.
Sources: Facebook MBO Cinemas.