Pegasus, Heartbeat, Air Force One not shutting down

MANILA, Philippines — Listed realty company Jolliville Holdings Corp. on Wednesday denied reports that the coronavirus disease-2019 (COVID-19) pandemic has forced the closure of popular night clubs paying rent to the company.

Jolliville issued the statement in a disclosure to the stock exchange in response to a report by Manila Standard newspaper titled "Jolly Ting shuts down Pegasus, Heartbeat, Air Force One" on Tuesday. "We would like to clarify that the above statements are false," the company said.

Citing anonymous sources, Manila Standard reported that Jolly Ting, company chairman and chief executive, released separation pay to employees of "several high-end entertainment clubs and KTV bars in Metro Manila," including Pegasus Ultimate Men’s Club and Heartbeat Mega KTV.

But Jolliville stressed that Ting cannot close the clubs because he is not the owner of these businesses. The company said it only leases and rents out its properties to enterprises engaged in KTV entertainment and recreation centers in the capital.

"We hope this clarifies the misinformation as stated in the above article," the firm said.

That said, all adult night clubs and bars in Metro Manila have stopped operations since Luzon was placed under enhanced community quarantine in March 17. They remain close under a more relaxed general community quarantine regime that started June, and it is unclear whether the facilities are among the firms that will be allowed to reopen once restrictions are eased further.

Earlier, Jolliville admitted that while the health crisis "has not materially affected the group’s business at this time," a prolonged pandemic may "affect our group’s business, especially our leasing operations."

"Some lessees' businesses are affected by the COVID-19 situation and some have decided to reduce operating hours or close temporarily," the company said in a regulatory filing on March 16.

"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," it added.