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SINGAPORE, Oct.30 (The Straits Times / ANN): Robinsons is liquidating its two department stores at The Heeren and Raffles City Shopping Center, the retailer said on Friday (Oct. 30).
This means that the last two Robinsons stores will close and the company will exit the physical retail scene of Singapore after 162 years.
Robinsons said in a statement that the liquidation decision was made after the “inability of the store to continue operations due to weak demand in department stores.”
Danny Lim, Robinsons Senior General Manager, said: “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 be successful in the long term and the Covid-19 pandemic has further exacerbated our challenges.
“We have been successful over the years and it has been an honor for Robinsons to serve the Singapore market. I am grateful for the dedication of our team and for the support shown by our customers throughout the years.”
Robinsons said the dual trend of more people turning to online shopping and lower demand for department stores is to blame for the drop in retail sales, a problem that has been compounded by the coronavirus pandemic.
The chain’s retail operations were bought by the United Arab Emirates-based Al-Futtaim Group in 2008 for $ 600 million.
In 2016, the Al-Futtaim group, which owns Robinsons and other franchises like John Little and Bebe, announced that it would be closing 10 or more stores in Singapore, citing the challenging retail environment.
The company suffered losses for at least the last six years due to reduced sales, The Business Times reported.
Shoppers visiting the Robinsons store in Raffles City on Friday (October 30, 2020). – The Straits Times / ANN
In 2018, it sank $ 54.4 million in the red after revenue fell to $ 153.8 million. In comparison, the turnover was 257.3 million dollars in 2014.
His Raffles City store opened in 2001.
Later, the company opened its flagship store at The Heeren in 2013, occupying six floors and 186,000 square feet.
Then in 2016, Robinsons launched its first e-commerce website and also closed the last John Little outlet in Plaza Singapura at the end of the same year.
In the third quarter of this year, Robinsons closed its Jem store in Jurong East, which it had opened in 2013.
Following Robinsons’ announcement on Friday, OCBC Bank said it will cancel your OCBC Robinsons credit card effective April 15 of next year.
Vincent Tan, Head of Card Business at OCBC, said: “We are grateful to have been able to partner with Robinsons on a successful co-branded credit card platform in Singapore for the past 18 years.”
Cameron Duncan and David Kim of corporate advisory and restructuring firm KordaMentha have been named interim liquidators, Robinsons said Friday.
The interim liquidators will now take control of the company’s assets and evaluate options for obtaining value in order to maximize returns to 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,” Robinsons added in the statement.
The retailer said its employees were briefed on Friday by management and interim liquidators of the liquidation, adding that they have been assured that the liquidators will now work to maximize returns for creditors, including employees.
Workers at the Robinsons store in Raffles City packing items off the shelves into cardboard boxes on Friday (Oct. 30, 3030). – The Straits Times / Asian News Network
Robinsons said his administration has ensured that employees are backed with payments that will be made to them according to the next pay cycle.
“(This) is well ahead of the usual time for the liquidation process, which would generally take months,” the company added.
KordaMentha will now aim to work with the Singapore Mercantile and Manual Workers Union, the Employment and Employability Institute of the National Trade Union Congress and the NTUC Workplace Safety Council to ensure that employees are supported.
Liquidators will also take advantage of existing government schemes, such as SkillsFuture Singapore’s SGUnited Jobs and Skills Package.
The Robinsons stores in Malaysia, located at Shoppes at Four Seasons Place and The Gardens Mall, will also undergo a similar liquidation process with the appointment of RSM Malaysia’s Datuk Robert Teo Keng Tuan on Friday as interim liquidator.
Some buyers, like 48-year-old housewife Suyan Hong, were “totally stunned” when they were told that Robinsons was on provisional sale.
“I knew they were downsizing after announcing their (Jem) store closing. But generally when downsizing occurs, it’s a cost-cutting measure that will help improve the company’s margins. I didn’t expect them to close,” he added . she said.
Hong said department stores introduced him to brands like Jigsaw, Whistle and Trucco, which he shopped frequently.
“I will miss the spontaneous experience of being able to find anything from clothing, household items, and children’s items in one place at Robinsons,” he said. “Robinsons is the place I would go for last minute shopping during the holiday season.” – The Straits Times / Asian News Network
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