(Yicai Global) Dec. 1 -- Beijing Tahoe Film and Television Cultural Development is to close its movie theaters for the time being as the Chinese cinema chain operator waits to see if the industry, laid low by the Covid-19 pandemic, can take a turn for the better, the Securities Daily reported today.

Tahoe Film has changed its business strategy and will suspend operations until further notice, the report said, citing parent firm Tahoe Group. Tahoe cinemas in Chongqing, Hangzhou, Xi'an, Zhengzhou, Tianjin, Tongling and Tai’an did not answer calls from the media.

The Beijing-based company, although small fry compared to industry giants such as Wanda Film with just 24 theaters, has been doing well in recent years. Its box office takings more than doubled last year from the year before to CNY134 million (USD20.4 million), ranking 57th among the country’s cinema chains, according to Top Thinktank data.

The pandemic, though, has brought the cinema industry to its knees with audiences staying home and movie studios deferring the release of new blockbusters. This year Tahoe Films has only earned CNY36.6 million (USD5.6 million) so far.

The industry is likely to be further disrupted as the pandemic continues to spreads abroad and less foreign films are made, leading to a shortage of content to screen, said Shi Yedong, chief executive officer of Beijing Yuedong Culture Media. The situation might even get worse if there are more waves of the novel coronavirus.

This year may not be the most difficult yet, Shi said. Large cinema chains and film investment companies will still face a severe test of cash flow next year, he added.

AMC, the US’ biggest cinema chain owned by Dalian-based Wanda, has warned that unless conditions improve or it can secure new financing, it will run out of cash by the end of the year.

Editor: Kim Taylor