The Palace IFC cinema at Hong Kong’s IFC Mall may close. Sun Hung Kai Properties (SHKP), which manages the mall, is contacting potential tenants to replace the upscale movie theatre, sources reveal. The cinema business has seen weaker foot traffic, causing concern. “With the space’s size and its position in the mall, it is less straightforward to find a domestic tenant, so they may need to explore overseas alternatives,” said a property agent involved in talks. No formal leasing plan is set yet. SHKP declined to comment. The IFC Mall is owned by SHKP and Henderson Land. Palace IFC, operated by film distributor Edko Films, runs five screens with 544 seats. Edko did not respond to requests for comments. This move highlights the challenges cinemas face in the changing entertainment landscape in Hong Kong.