The end for UA Cinemas

Major theater chain UA Cinemas ground to a halt after 36 years in Hong Kong last night amid the "devastating pressure" of Covid-19.

Closure notices were up at UA's six cinemas, saying the company was winding up.

Its website, social media pages and mobile app also ceased operations at midnight.

"UA Cinemas has always been committed to providing the highest quality of cinematic entertainment since it was founded in 1985 by Ira Kaye," the notice read, referring to the Hong Kong-based American businessman.

"However, we regret to announce that UA Cinemas will cease business with immediate effect due to unavoidable and devastating pressure faced by our operations since the outbreak of the coronavirus pandemic."

UA's Amoy Plaza operation in Kowloon Bay was sued last year by Hang Lung Properties for unpaid rent of over HK$7 million while its cinema in Times Square, Causeway Bay, was sued by landlord Wharf Real Estate Investment for HK$1.92 million in rent arrears.

And its K11 Art House in K11 Musea in Tsim Sha Tsui was taken over by MCL Cinema last month.

Cinemas in the SAR were ordered to close three times last year - in March, July and December - due to the pandemic.

The latest suspension lasted 78 days until February 18.

Many releases, it has been noted, would have made killings at the box office during Christmas, Lunar New Year and Valentine's Day.

On that, a UA spokesman said it had zero income over the past six months but still faced high rents and fixed expenses.

Despite trying to cut costs and broaden sources of income, he added, UA Cinemas failed to bear the huge financial pressure.

Although cinemas were ordered to close for about six months in all, the company did not sack employees.

Until Sunday night, that is. Then, more than 100 people affected were told they did not need to go to work yesterday.

The company explained severance and ex-gratia payments to employees at a meeting at Duke of Windsor Social Service Building in Wan Chai yesterday afternoon.

The chain also apologized to citizens who have supported it for years, saying it had no choice but to close.

UA also asked people to call 3104-1777 or 3104-1779 for inquiries, though it will announce more information later this week for people with memberships or gift vouchers.

Federation of Hong Kong Filmmakers chairman Tenky Tin Kai-man said it was too early to say if there would be a rebound for the movie industry this year given the current 50 percent capacity cap on audiences and the unpredictability of the pandemic.

"The upcoming peak period is Easter," he said, "but you don't know whether the government will order [the sector] to close again. So everyone now has a wait-and-see attitude."

With fewer cinemas in the SAR, Tin is worried that local productions will be reduced.

Sports, performing arts, culture and publication sector lawmaker Ma Fung-kwok said it was a pity to see the UA chain close as it had featured many local classic films over the years and brought entertainment to citizens. Also some of the film productions in which he participated played in UA cinemas.

The pandemic had also spawned an expectation "that cinemas could not hang on,' Ma added, "and there were rumors that UA would close."

Ma said too that the industry had told government officials about its bleak situation many times, but "unfortunately" they offered assistance measures that amounted to no more than "a drop in the bucket."

Hong Kong box office receipts amounted to HK$530 million last year, down 72 percent from HK$1.9 billion in 2019.

Only 218 movies managed to have runs compared to 329 in 2019.