MCAT Box Office Sdn Bhd, or commonly known as MBO Cinemas, is said to be facing liquidation due to cash flow problems since the implementation of the Movement Control Order (MCO). The Edge claims that it had sighted a notice of the company’s liquidation that was sent out to creditors.
“We would like to inform you that on Oct 14, 2020, the board of directors of MCAT Box Office Sdn Bhd passed resolutions placing the company in creditors’ voluntary liquidation and appointing Lim San Peen of PricewaterhouseCoopers Advisory Services Sdn Bhd as interim liquidator,” the letter read.
The notice also calls for a meeting between the creditor and interim liquidator to discuss the process, added The Edge. Liquidation, for those unaware, is a process where a company is required to sell its assets in order to repay creditors, prior to closing down.
Good Morning, as we venture further into 2020 with the number of rescheduled blockbusters and fluctuating number of local cases. We have decided to close these cinemas until further notice.
Thank you for your support, and we hope to see you at these locations again in 2021. pic.twitter.com/qadGKa0Eaz
— MBO Cinemas (@mbocinemas) October 12, 2020
MBO Cinemas currently has 27 locations across the nation, but only four of its cinemas are open for business since 1 July 2020 during the implementation of the Recovery MCO phase in Malaysia. Its other locations remain closed until further notice due to the Conditional MCO imposed in Selangor, Kuala Lumpur and Sabah.
The Edge’s report did not mention when the liquidation process of MBO Cinemas will take place. Should the report be accurate, it is expected that the company will provide an official announcement regarding its closure in the near future.
(Source: The Edge)