The transfer of management and operations at Club Cubic, the popular nightclub located at City of Dreams Macau, to Melco Resorts & Entertainment was due to a dispute over rent relief, according to Cubic’s former owners.
In a filing, Luk Hing Entertainment Group Holdings Ltd – which launched Club Cubic in 2011 – said the business had been adversely impacted by COVID-19 lockdowns, the closure of business and social distancing measures, resulting in revenue loss or slower revenue growth.
In response, it had “attempted to liaise with [Melco Resorts & Entertainment subsidiary] COD Resorts Limited, the cooperation partner of Club Cubic Macau for rental reductions or concessions, but the result was not very fruitful.
“Due to disputes between COD and the Group in relation to the operation of Club Cubic Macau at the Boulevard, City of Dreams, Macau, the Group would be unable to continue to operate Club Cubic Macau from 8 October 2021,” it said.
Luk Hing added that it was seeking legal advice in relation to its rights over the matter. Neither the company’s other nightclub, CUBIC SPACE+ in Zhuhai City, nor its Hong Kong restaurant business is impacted by the Macau dispute.
Melco revealed last week that it was assuming the management and operations of Club Cubic, which is currently closed due to pandemic health orders, and would reopen the nightclub with a new name once those health orders are lifted.
Club Cubic covers around 30,000 square feet of space at City of Dreams Macau.
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