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Wednesday, December 7, 2022

Say Goodbye to MBO as GSC acquires its Assets

NewsSay Goodbye to MBO as GSC acquires its Assets

The Conditional Movement Control Order (CMCO) had allowed all businesses to operate as usual. Unfortunately, MBO Cinemas will not be joining this time. Golden Screen Cinemas (GSC), owned by PPB Group Bhd had announced that they will be acquiring the majority of the assets from MBO Cinemas.

According to The Edge, MBO chain of cinemas is currently undergoing a creditors’ voluntary winding-up. GSC said that they’ve inked the deal on 23 February 2021 and the transfer of assets are expected to complete by June 2021.

In the statement released by chief executive officer (CEO) of GSC, Koh Mei Lee, she said that GSC viewed that the Covid-19 pandemic as a temporary setback and are confident that once the pandemic has passed, audiences deprived of out-of-home-entertainment will return to the cinemas with a vengeance, consistent with what they have seen happen in other regions.

Source: The Borneo Post

GSC is in view that the acquisition is strategic and this will help accelerate the brand’s growth and strengthen its market leadership position. GSC will be optimising both GSc and MBO’s technologies, assets and know-how to deliver even more enriching cinema experiences than before to its customers.

The Malaysian Association of Film Exhibitors (MAFE) had in a press release said that the local cinema industry had suffered losses of up to 90% in revenue and more than RM500 million in total losses in the year 2020 alone.

They urged the government to consider the opening of cinemas as the local film industry is struggling to maintain its operations. MAFE cited that it is unfair to keep cinemas closed while gyms and spas are allowed to operate.

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