PETALING JAYA: Kim Hin Joo (Malaysia) Bhd clarified that its business operations are not expected to be affected by the restructuring of Mothercare UK.
Kim Hin Joo is the exclusive sole-franchisee of Mothercare in Malaysia. The Guardian.com reported that Mothercare’s UK business was entering administration, putting 2,500 jobs at risk.
“Based on Kim Hin Joo’s understanding with its franchisor, Mothercare UK will be undergoing a restructuring process, which will result in a segregation of Mothercare UK’s profitable global brand business from its UK retail operations,” the group said in a press statement.
Kim Hin Joo stressed that it will continue business operations as usual, backed by its steady financial performance indicated by its Q2 19 results.
It also pointed out that Mothercare UK’s global brand business remains profitable as it generates over £500 million (RM2.67 billion) in revenue each year from over 1,000 stores internationally in over 40 territories in which the Mothercare brand operates, including the Kim Hin Joo business in Malaysia.
Kim Hin Joo chairman Pang Kim Hin added that the group is on track to diversify into the toy sector with its partnership with Entertainer UK.
At 3.25pm, the stock was trading half a sen lower at 28.5 sen on 14,500 shares done.
