Founded in 1858, Robinsons is one of the oldest department stores in Singapore.
The Business Times reported today (October 30) that the retail giant will make its exit from Singapore for good, following losses in the recent years.
According to Robinsons, corporate advisory and restructuring firm KordaMentha’s Cameron Duncan and David Kim have been appointed as provisional liquidators.
They will take control of the company’s assets and assess options to realise value in order to maximise returns to creditors.
Its last two stores at The Heeren and Raffles City Shopping Centre are likely to “remain open for a while more for final sales,” it added.
Robinsons’ employees have also been informed of the developments, and the company said that employees would be paid in line with the next payment cycle.
The liquidators will also work with The Singapore Manual & Mercantile Workers’ Union (SMMWU), E2i and the NTUC Job Security Council to ensure that the employees are supported.
At Least Six Years Of Losses
According to the BT report, the department store has been chalking up at least six years of losses amid declining revenues.
Financial records show that the company recorded up to S$54.4 million in losses in 2018.
Its topline also shrunk, and it generated S$153.8 million in revenue in 2018, down from the S$257.3 million it made in 2014.
At the end of August, Robinsons shuttered its Jem outlet, saying that it was “no longer a sustainable option” to operate multiple large-scale department stores in Singapore.
In line with the shifting retail landscape and Covid-19 pandemic, Robinsons had ramped up its efforts to reach customers online.
In addition to its existing online store, which underwent a revamp, it also launched its products on Lazada’s ‘LazMall’. These plans however, have not come to fruition.
Robinsons said that its stores in Malaysia would also undergo a similar liquidation process concurrently.
“We regret this outcome today. Despite recent challenges in the industry, the Robinsons team continued to pursue the success of the brand,” said Robinsons’ senior general manager Danny Lim.
“We have enjoyed success over the years, and it has been an honour for Robinsons to serve the Singapore market.”
Featured Image Credit: InDesign Live Singapore
