Hong Kong-listed Future Bright Holdings Ltd said Friday it has entered into a termination agreement with SJM Resorts, S.A. under which it has terminated an agreement to operate a food court at Macau’s Grand Lisboa Palace for at least the next three years.
Future Bright, which describes itself as being primarily involved in the sales of food and catering, food souvenirs and in property investment, said by way of a filing that it will now derecognize the rights-of-use assets in its consolidated financial statements and will repay a consultancy fee of MOP$22,700 (US$2,820) in respect of the vetting services for preliminary design of the Property.
Outlining the reasons for terminating the agreement, Future Bright cited “uncertain economic environment caused by the COVID-19 pandemic” which had seen it engage in ongoing discussions with SJM over the termination.
“After various negotiations, both Bright Noble and [SJM] have reached an agreement to early terminate the agreement,” it said. “As of the date of the Termination Agreement, Bright Noble has not taken possession of the Property.
“Considering the current tourist industry in Macau, the Group intends to focus on its existing business to generate stable income and to reduce the operating expenses and financial burden of the Group which will be beneficial to the Group in the long run.”
Grand Lisboa Palace opened its doors in July 2021, in the heart of the COVID-19 pandemic, and only turned EBITDA positive in the opening quarter of 2023 according to information from SJM.
