Robinsons Closing Down In S’pore Following Heavy Losses For 6 Years
Founded in 1858, Robinsons is one of Singapore’s oldest department stores.
The Business Times reported today (October 30) that the retail giant will be leaving Singapore for good, after losses in recent years.
According to Robinsons, Cameron Duncan and David Kim, of the consulting and corporate restructuring firm KordaMentha, have been appointed interim liquidators.
They will take control of the company’s assets and assess options to realize value to maximize returns to creditors.
Its last two stores at Heeren and Raffles City Mall are expected to “stay open for a while for final sales,” he added.
Robinsons employees have also been briefed on the developments and the company said employees will be paid based on the next payment cycle.
Liquidators will also work with the Singapore Manual & Mercantile Workers’ Union (SMMWU), E2i, and the NTUC Job Security Council to ensure employees are supported.
At least six years of losses
According to the BT report, the department store is recording at least six years of losses amid declining revenues.
Financial records show the company recorded losses of up to $ 54.4 million in 2018.
Its revenue also declined and generated revenue of $ 153.8 million in 2018, up from $ 257.3 million in 2014.
At the end of August, Robinsons closed its Jem outlet, saying it was “no longer a sustainable option” to operate several large-scale department stores in Singapore.
In line with the changing retail landscape and the Covid-19 pandemic, Robinsons has stepped up efforts to reach online customers.
In addition to its existing online store, which has undergone an overhaul, it has also launched its products on Lazada’s “LazMall”. However, these plans did not materialize.
Robinsons said its stores in Malaysia would also undergo a similar liquidation process at the same time.
“We regret this result today. Despite recent industry challenges, the Robinsons team has continued to pursue the success of the brand, ”said Robinsons senior general manager Danny Lim.
“We have had success over the years and it has been an honor for Robinsons to serve the Singapore market.”
Featured Image Credit: InDesign Live Singapore
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