Cathay Cineplexes' parent company mm2, Singapore, has acquired WE Cinemas' 321 Clementi movie theatre. The move will take effect November 1, when the cinema will continue operations as Cathay Cineplexes Clementi 321.
The deal shows mm2's "continued confidence in the cinema business and our steadfast belief that blockbusters will return to our screens soon", Melvin Ang, the media company's executive chairman, said.
Ang said that 321 Clementi was "well located in the heart of Clementi, in a well-positioned estate which serves a good spread of public and private housing estates, polytechnics and universities; and is the nearest to town amongst all our other cinemas operating today."
Ang said that the cinema business has yet to recover fully in the years since the COVID-19 pandemic, citing factors like limited capacity occupancies due to social distancing, strikes in Hollywood that resulted in a blockbuster shortage and the changing consumer habits of filmgoing audiences.
"The business recovery is taking longer than expected,” he said.
Recently, the business has seen a resurgence at the box office as well as several notable acquisitions, joint ventures and large-scale cinema improvement plans in the US, China and Southeast Asia, mm2 noted.
“We have embarked on a journey of rightsizing Cathay Cineplexes, where we have stopped operations in two Orchard Road locations, followed by Parkway Parade and most recently AMK Hub as the space was to be redesignated for other uses," Ang said. "This inevitably raised concerns and doubts about our abilities to continue the cinema business.”
The rightsizing operation has gone well, Ang noted, adding that Cathay Cineplexes' "current structure places us in a much better position for when business rebounds, not long from now as we expect it to".
Cathay Cineplexes also took up shop at Century Square in November 2023. With the addition of Cathay Cineplexes Clementi 321, it will have six outlets in Singapore.”
Ang was optimistic of adding more outlets "as we monitor the rest of the recovery", and said that similar rightsizing plans are being carried out with mm2's cinemas in Malaysia.
"Rightsizing means managing our overall costs effectively while continuing to provide good customer service and experiences,” he said.