JCube Closure Incurs Losses For Tenants
With JCube’s impending closure in August, most tenants will be moving out or ceasing operations in July.
JCube To Officially Close On 6 Aug, Will Be Transformed Into 40-Storey Residential Development
However, this means that they have to incur losses to pay to end their third-party contracts early.
These tenants, like most, engage service providers for necessities such as security systems and internet connections.
The closure means that these tenants cannot fulfil their third-party contracts. As such, they will have to fork out money from their own pockets to end these contracts early.
Business as usual for 90% of businesses in JCube despite impending closure
According to Shin Min Daily News, JCube will close on 7 Aug to make way for a 40-storey residential development.
Source: Streetdirectory
Only the first two floors will be for commercial use. Hence, the mall’s last day of operations will be 6 Aug and it will close for good at 10pm.
With just a little over two months left before the closure, Shin Min Daily News went down to check on the tenants.
The paper observed that it seemed to be business as usual for about 90% of the shops. The footfall appeared to be normal as well.
Watch shop owner paid over S$1,000 to terminate third-party contracts prematurely
Chen Xiuyue (transliterated from Mandarin), the owner of a watch shop, told Shin Min Daily News that she moved into JCube in 2021.
Source: JCube on Facebook, for illustration purposes only
She first established her shop in 1997 near Jurong East MRT Station and shifted to the mall when construction began for the upcoming Jurong Regional Line.
When she moved into JCube, she signed a three-year contract. It was supposed to end sometime in early 2024.
At the time, she also signed contracts with third-party service providers for the shop’s security system and wireless network. These contracts were also for three years.
Now, she has no choice but to end the contracts early due to the unexpected closure of JCube. She forked out S$1,056 to terminate said contracts.
While Ms Chen has approached mall management for assistance, she has yet to receive a response from them.
Her JCube shop will close on 31 July. She also has outlets in Choa Chu Kang and Yew Tee.
Apparel store owner loses S$5,000 in operating costs each month
Another tenant told Shin Min Daily News that business has only gone downhill since the Covid-19 pandemic.
Her apparel store has been at JCube for 10 years. However, in recent years, there are days when she only makes tens of dollars.
Source: Shin Min Daily News
Some months, she loses over S$5,000 in operating costs as well. The store will permanently close on 31 July.
Previously, many apparel stores littered the second story of JCube. But now, only seven are left, she told the Chinese daily.
Shin Min Daily News reported that JCube’s management has referred some stores to move to Westgate mall.
However, the rent there is reportedly twice as high as that at JCube. Hence, the store owners would rather cease operations.
Music school saw 30% drop in students
The closure of JCube does not affect just retailers — service providers aren’t spared from the impact either.
Seimpi Music School, which is located on the fourth floor of JCube, will move to Bestway Centre in July.
Source: Google Maps
Although the new spot is just across the road from its current premises, an employee of the school told Shin Min Daily News that they have lost 30% of their students already.
“Some parents say it’s too far for them and prefer shopping malls like JCube,” the employee explained.
Other enrichment centres in JCube have plans to move to the nearby CPF Building, Jurong Regional Library, or Jem in July or August.
JCube management working closely with tenants to help ease transition
A spokesperson for JCube revealed to Shin Min Daily News that only five tenants have moved out since they announced the upcoming closure in February.
The mall currently has no plans to bring in new tenants to replace those that have moved out.
At the moment, they still have over 100 lease contracts.
The spokesperson highlighted that the notification they issued regarding the mall’s upcoming closure was in accordance with contract agreements.
They added that JCube’s management is working closely with tenants to provide assistance and ensure a smooth transition.
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