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PETALING JAYA: Robinson Co (Malaya) Sdn Bhd has started the liquidation process of its two stores in Malaysia, located at The Gardens Mall and Shoppes at Four Seasons Place.
Datuk Robert Teo Keng Tuan of RSM Malaysia has been appointed interim liquidator. The interim liquidator will now take control of the company’s assets and evaluate options for obtaining value in order to maximize returns for creditors.
Subject to confirmation, the liquidators expect the stores to remain open for the next several weeks to facilitate final sales to customers before they close.
Globally, retail buying patterns are seeing significant shifts from offline spending to online spending with the 2020 Global Ecommerce report showing that Asia Pacific will produce nearly 63% of all digital sales this year. Furthermore, the demand for department store concepts has weakened significantly with reports showing a decline in retail sales, registering a negative growth rate of 8.5% in Malaysia for the first quarter of 2020, compared to the same period of the year. previous. In addition, world-renowned companies have exited the industry with a US study that expects more than half of department store department stores to close within the next five years.
Similarly, in Malaysia, the retail industry posted the worst growth rate in 33 years and the outlook remains negative for the remaining months of the year as consumers are expected to reduce their spending. More department store closures have been announced in recent months and more are expected as department stores in particular continue to have problems. The negative effects of Covid-19 have exacerbated its impact.
Robinsons Senior General Manager Danny Lim commented: “We regret this result today. Despite recent challenges in the industry, the Robinsons team continued to pursue the success of the brand. However, the changing consumer landscape makes it difficult for us to succeed in the long term, and the Covid-19 pandemic has further exacerbated our challenges. We have enjoyed success over the years and it has been an honor for Robinsons to serve the Malaysian market. “
Robinsons employees have been informed today by management and interim liquidators of this announcement. They have been assured that interim liquidators will now work to maximize returns for creditors, including employees. Robinsons management has ensured that employees are paid in accordance with settlement regulations. In addition, these payments will be made to them according to the next payment cycle; long before the usual date of the settlement process, which would normally take months.
Liquidators will contact the appropriate government authorities to support employees during this liquidation period.
At the same time, the Robinsons stores in Singapore, located in The Heeren Mall and Raffles City, will also undergo a similar liquidation process with the appointment of Cameron Duncan and David Kim of KordaMentha as interim liquidators.
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