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SINGAPORE: Robinsons creditors will have to wait until next year, probably between April and June, to recoup what the department store operator owes them, two sources told CNA after a meeting of creditors on Thursday (Nov. 26). ).
KordaMentha liquidators also told those who attended the online meeting that the two remaining Robinsons stores at The Heeren and Raffles City mall will continue to operate to close sales until the middle to the end of next month, sources who spoke under condition of anonymity.
Robinsons announced in a separate press release that it will hold its final Black Friday sale on November 27 with discounts of up to 70 percent throughout the store.
“They want to keep selling the assets, which include inventory in stores, until mid-December or the end of December. (The liquidators) said that they cannot give a fixed date for the closing of the stores because it is still a work in progress, “said one of the sources who attended the meeting.
“Then they will do the conciliation and decide how much each creditor will receive. It will be from April to June 2021 when they can begin to distribute the assets, “he added.
READ: Robinsons to close last 2 stores in Singapore due to weak demand
Both sources, who are suppliers to the department store and are owed six-figure sums each, said they have no hope of getting back what is owed to them.
Taking legal action is not an option for them either, one of the providers said. “They don’t have money, so does it make sense to sue them? The legal fees are also too high. We can only wait and see what happens. “
Attorneys previously told CNA that vendors, who are considered unsecured creditors and are at the bottom of the priority list in a liquidation scenario, have a slim chance of receiving full payment.
READ: ‘I Doubt We Will Get Paid’ – Robinsons Providers Left High
Thursday’s online meeting, which started at 2 p.m. and lasted about an hour and a half, was held for creditors to vote on various resolutions after Robinsons announced his decision to throw in the towel.
All resolutions were approved by a majority of creditors present, both in number and value. More than 200 creditors were present at the online meeting.
These include the appointment of Cameron Duncan and David Kim of KordaMentha as liquidators who oversee the liquidation of the department stores.
A five-member inspection committee was also appointed, which includes representatives from the major creditor groups, such as employees, owners, and suppliers.
442 CREDITORS OWE MORE THAN S $ 31M
Robinsons, owned by Dubai-based Al-Futtaim Group, unexpectedly announced on October 30 that it would be closing its two remaining department stores in Singapore.
The decision to exit the Singapore market after 162 years comes amid changing retail buying patterns and weak demand exacerbated by the COVID-19 pandemic, it said.
READ: Do department stores still have a future in Singapore?
In a Nov. 13 notice calling for the creditors’ meeting, Robinsons said he owed about S $ 31.7 million to 442 creditors.
The largest amount owed, about S $ 7.2 million, went to Swee Cheng Holdings, the owner of its flagship store at The Heeren.
It also owed two other owners, Lendlease Retail Investments and RCS Trust, S $ 4.2 million each. The former operates the Jem Mall, where Robinsons had a store until August, while the RCS Trust runs the Raffles City Mall.
Mattress brands Tempur, Simmons, Sealy and Serta were also on the list. Among them, Tempur had the most at S $ 154,408, while the other three brands owed S $ 35,556, S $ 56,590 and S $ 17,889, respectively.
READ: Some Mattress Suppliers Fulfill Robinsons Customer Orders
When contacted, a Simmons spokesman said the amount on the notice “is not the actual amount owed” to the company.
“The actual amount owed is definitely more than that as it includes goods already delivered between September and October 2020 before the sudden liquidation announcement,” the spokesperson added, without disclosing a figure. Simmons has filed his proof of debt with the liquidator.
Other affected brands that were owed significant sums include fragrance and cosmetics distributor Luxasia (S $ 826,631) and cosmetics giant L’Oreal Singapore (S $ 572,700).
The notice also showed that potential employee claims amounted to approximately S $ 4.4 million. Robinsons employs about 175 people in Singapore.
These amounts are in accordance with Robinsons records and filing of creditor claims is ongoing, KordaMentha director Hamish Bull told CNA on Thursday.
