Jolliville Holdings Inc., the holding company of businessman Jolly Ting, on Thursday confirmed the temporary suspension of operations of its KTV clients amid the coronavirus pandemic.
“JOH [has] been informed of the temporary suspension of our clients’ business in light of the COVID-19 pandemic. It may be expected that lease payments and service contracts with these clients may be reviewed and renegotiated, while clients’ operations remain suspended,” the company said in a disclosure to the stock exchange.
It issued the statement following a report at Manila Standard that several high-end entertainment clubs, including Pegasus and Heartbeat, shut down their operations because of the huge impact of the health crisis on their businesses.
Jolliville denied that Air Force One, a high-end entertainment club in Parañaque City was among its clients. “JOH and its subsidiaries do not have any business relationship with Air Force One,” it said.
The company also clarified that its unit Servwell BPO International Inc., which provides technical services and back office support, does not employ thousands of employees, nor does it provide talents and staffing needs to owners of KTV entertainment/recreation clubs.
On June 9, Manila Standard, quoting a well-informed source, reported that Jolly Ting, chairman and chief executive of JOH, has sent out separation pay to employees of several high-end entertainment clubs and KTV bars in Metro Manila’s pleasure districts, including Pegasus Ultimate Men’s Club and Heartbeat Mega KTV.
Jolliville said it is a lessor to the independent businesses in the KTV entertainment/recreation business, while Servwell BPO, a JOH subsidiary, provides technical services and back office support. “Servwell does not employ thousands of employees, nor does the company provide talents and staffing needs to said clients,” it said.
Jolliville said in a filing with the Securities and Exchange Commission at the beginning of the enhanced community quarantine period that it was anticipating the effects of the pandemic on its leasing business.
“While it is uncertain how long the pandemic will last and how affected the country will be, a prolonged pandemic may affect our group’s business, especially our leasing operations,” it said in the filing.
“Some lessees’ businesses are affected by the COVID-19 situation and some have decided to reduce operating hours or close temporarily. While the lessees pay rent on a monthly basis under a yearly contract, it is possible that their capacity to pay in full or on time may be compromised by the current situation,” Jolliville said.