Club Cubic ex-op says asked CoD for rent concessions

Oct 11, 2021 Newsdesk Industry Talk, Latest News, Macau  

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Hong Kong-listed Luk Hing Entertainment Group Holdings Ltd, which until Friday had been the designated operator of the Club Cubic nightclub (pictured in a file photo) at the City of Dreams (CoD) Macau casino resort, said in a filing that evening, it had ceased to do so “due to disputes between City of Dreams and the group”.

“The group is seeking legal advice in relation to its rights over the aforesaid matter,” added the filing.

Luk Hing stated it had “attempted to liaise with City of Dreams Resorts Ltd, the cooperation partner of Club Cubic Macau, for rental reductions or concessions, but the result was not very fruitful.”

City of Dreams Macau, on Cotai, operates under the gaming licence of United States-listed Melco Resorts and Entertainment Ltd.

Luk Hing said in its announcement that due to the Covid-19 pandemic, the operation of Club Cubic had been “materially and adversely impacted by lockdowns, closure of business and social-distancing measures, resulting in revenue loss or slower revenue growth”.

The filing noted that for the six months to June 30 – as outlined in Luk Hing’s interim report issued in August – Club Cubic had accounted for “approximately 17 percent of the group’s total revenue” for the period.

The company said its other businesses, including a nightclub in Zhuhai in Guangdong province on the mainland, and restaurant business in Hong Kong, remained in “normal operation and are not affected” by the firm’s exit from the Club Cubic business at City of Dreams Macau.

Earlier on Friday, Melco Resorts had said in a statement it was taking over management of Club Cubic that day and would shut it, then reopen it, under a new name.

Currently, entertainment venues in Macau, including nightclubs, are shut as a Covid-19 countermeasure, by order of the city’s government, following recently-confirmed Covid-19 infections.

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